Should the countervailing duty be imposed

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Question: State H provides general subsidies to all of its export manufacturers by means of low-cost loans, foreign currency exchange guarantees, and discounted prices for fuel and electricity purchased from the state's energy monopoly. HowdyDoo Company, a State H manufacturer of shampoos that has taken advantage of all of these subsidies, exports its goods to State I, where its products are in direct competition with those of several local manufacturers. State I's manufacturers have complained to their government, asking it to impose a countervailing duty on HowdyDoo. Both State H and State I are members of the WTO. Should the countervailing duty be imposed? Explain.

Reference no: EM131768572

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