In what ways might valuation methods implicate dumping and dumping remedies? Subsidies? Provide an example.
Valuation methods might implicate dumping in international trade by lowering the prices of a certain product below the domestic price or even below the production cost to take a bigger market share or to take out the competition. The world trade organization WTO is making restriction against these actions. The antidumping duties are only applied after finding material damage. The factors of it are the volume of products or services sold at that low price, its effects on the price of domestic products in the same category, and the impact on the domestic industry. A subsidy is when the government makes it easier for a domestic firm by giving some financial contribution or lowering taxes on it or giving it a loan with low interest.
An example of dumping is when President Bush said that China and Vietnam were dumping shrimp in the United States. The industry dropped more than $4 billion during that time and cost the domestic industry to lose more than 3500 jobs. After they found this, they raise the tariff on shrimp on those two countries from 4% to 112%.