The home firm is considering whether to enter the Foreign market. The product is sold at home for $28, and in the foreign market it would be sold for $19.
Use the DOC’s first method of determining fair market value (using the home price of the product) to answer the questions below.
i. What is the fair market value of the product Home sells?
ii. What is the dumping margin?
iii. Is the Home firm dumping according to DOC rules?
iv. If yes, at what dollar value will the DOC set the special tariff?
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