Question: Instructions: Read the case study below. then answer the questions that follow. *Infants' clothing, an American firm, manufactures and sells clothes for babies only. It

Instructions: Read the case study below. then
Instructions: Read the case study below. then answer the questions that follow. *Infants' clothing", an American firm, manufactures and sells clothes for babies only. It has been specialized in making clothes for babies for more than 10 years and has only few competitors in the US market. This slight competition hasn't affected the huge sales that "Infants' clothing" has been making, Recently, the firm's sales started to drop, and the CEO was not satisfied with those sales figures. He immediately started the market research and found out that their market share was lost to a Chinese company called "babies' clothing" which has imported their products to U.S.A and was selling them for $40piece despite the fact that its manufacturing costs alone were $50/piece. "babies' clothing was able to do this with the help of the Chinese government. The CEO claimed this issue to the US government and stated that it was not acceptable at all for any country in the world to threaten their local industry. The US government replied that in order not to enter a trade battle with the Chinese, it will impose a 20% tariff on imported baby clothes by the same amount of help given by the Chinese government in order to counteract that act, and help the American company to export its products to China. After application of this solution, sales numbers started to increase again. 1. What kind of dumping was done by "Babies clothing against the American company? what is the name of the trade practice by the American government? Justify (25 marks). 2. What kind of help did the Chinese goverment offer "babies clothing"? (25 marks). 3. Which form of (non-quantitative) nontariff barriers, can the United States use against the "babies' clothing products? (25 marks). 4. Under which foundations did the USA government intervention was made? (25 marks)

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