Recently, European Union (EU) governments approved a five-year EU trade protection against grain-oriented electrical steel (GOES) from Russia, Japan, China, South Korea, and the United States. The protection would consist of minimum import prices on shipments of GOES from any of the five listed countries. This measure was enacted as a punishment for exporters in these countries for allegedly dumping their product (i.e., selling below cost) on the European market. The European Steel Association lauded the plan, noting it would help protect an important subdivision of the steel industry. However, transformer manufacturers, who use GOES as an input to their production, have protested the minimum prices. They argue minimum prices will result in prices for GOES that are too high and lead to some of these manufacturers to downsize or move production facilities outside the EU.
a. What type of rivalry exists between the European Steel Association and GOES producers from Russia, Japan, China, South Korea, and the United States?
A. Producer-Producer
B. Consumer-Producer
C. Consumber-Consumer
b. What type of rivalry exists between the European Steel Association and European transformer manufacturers?
A. Producer-Producer
B. Consumer-Producer
C. Consumber-Consumer