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Author Question: When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in ... (Read 55 times)

lunatika

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on: Jun 29, 2018
When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is
 
  A) a U.S. import and an Italian export.
  B) both a U.S. and an Italian import.
  C) a U.S. export and an Italian import.
  D) neither an export nor an import for either the United States or Italy.

Question 2

Why is it difficult for one country to determine if another country is guilty of the practice of dumping?
 
  What will be an ideal response?
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gstein359

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

Dumping is when a firm or industry sells products on the world market at prices below the cost of production. Since it is difficult to know precisely what the costs of production are for foreign firms this can only be done by making assumptions which rely on data known for the home industry.


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