Question

Which of the following firms is guilty of dumping in the Brazil market under the definitions of dumping used by countries like the Brazil according to the textbook?

Microwave Sales	Average Unit Cost	Export price (in Brazil/foreign market)	Domestic price (in home market)
Panasonic (Japan)	$475	$450	$450
Miele (Germany)	$800	$850	$850
Samsung (Korea)	$500	$500	$550

Panasonic_______(yes/no)               Miele__________(yes/no)            Samsung____________(yes/no)

Answer 1

A firm is said to be dumping a product in a foriegn market when it charges a price in foriegn market which is lower than the price it charges in its home market.

Panasonic charges $450 for microwave in its home market and charges $450 in Brazil/foriegn market.

So,

No, Panasonic is not guilty of dumping in the Brazil market.

Miele charges $850 for microwave in its home market and charges $850 in Brazil/foreign market.

Miele is charging same price in both markets.

So,

No, Miele is not guilty of dumping in the Brazil market.

Samsung charges $550 for microwave in its home market and charges $500 in Brazil/foriegn market.

Samsung is charging lower price in foriegn market than home market.

So,

Yes, Samsung is guilty of dumping in the Brazil market.