Reference no: EM131768560

Question: The Snicker Company, the largest manufacturer of Snicker doodles in State F, decided about two years ago to enter the cookie market in State G. Several small companies in State G manufacture Snicker doodles, but the market has traditionally been very small. When Snicker entered State G's market, it undertook a widespread advertising campaign to promote Snicker doodle consumption and to encourage consumers to try its product by publishing coupons in newspapers that allowed purchasers to buy Snicker's Snicker doodles below their actual cost. As a consequence of this campaign, the sales of Snicker doodles in State G have skyrocketed. In addition, the sales of Snicker doodles manufactured by State G firms have more than tripled. State G's Snicker doodle manufacturers are, nonetheless, displeased, because their market share has gone from 100 percent to 30 percent in two years. Concerned with this loss, they have asked State G to impose anti-dumping duties on Snicker, since its snickerdoodles are being sold below cost. Both State F and State G are members of the WTO. Should State G impose antidumping duties on Snicker? Explain.