Real income or economic welfare of the united states, International Economics

Q. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers. Is this bad or good for the real income or economic welfare of the United States? Is the Brazilian firm engaged in dumping? Is this predatory nature on the part of the Brazilian steel company?

Answers: Good yes if you define dumping as selling abroad at a price lower than domestically. No if by dumping you denote selling below marginal cost. No - this isn't being done in order to capture market shares other than rather is "mere" static profit maximization behaviour as is expected of any self-respecting monopolist.

Posted Date: 6/25/2013 1:32:01 AM | Location : United States







Related Discussions:- Real income or economic welfare of the united states, Assignment Help, Ask Question on Real income or economic welfare of the united states, Get Answer, Expert's Help, Real income or economic welfare of the united states Discussions

Write discussion on Real income or economic welfare of the united states
Your posts are moderated
Related Questions
Question: (a) Illustrate the differences between inter and intra industry trade. (b) Foreign Investors generally tend to adopt a two-stage process when evaluating count


Q. Developing countries have often attempted to establish cartels so as to counter the perceived or actual inexorable downward push on the prices of their exported commodities. OP

What constitutes the basis for trade? What are the gains from trade in terms of production and consumption? Use theories and examples from a country of your choice.

Q. Countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export "pollution-intensive" goods. D


Q. Explain the difference between the following two expressions: Y = C(Y d ) + I + G + CA(EP*/P, Y d ) and Y = C + I +G + CA Answer: The first expression corresponds to a

Question : (a) What are the rationales for interest and currency swaps? (b) Suppose a Swiss firm, SandyCom Ltd, wants to invest in the U.S. The Swiss firm needs US dollars

Q. Who are the major participants in the foreign exchange market? Answer: 1. Commercial banks 2. Corporations 3. Nonblank financial institutions 4. Central banks

Write notes on opportunity cost by Haber lal