Please read the following paragraphs and answer the questions (one-page limit).

An Italian sunglasses manufacturing company manufactures women’s sunglasses in Italy and sells them to a wholesaler in Italy for a price equivalent to C$18.00. This price is sufficient for the manufacturer to cover all costs and recover a normal percentage of profit.

The same Italian manufacturer sells the sunglasses to a wholesaler in Canada. The extra cost of export to Canada (covering packing, shipping, insurance, customs duties, and handling) is C$1.00 per pair.

A Canadian manufacturing company manufactures an equivalent pair of sunglasses in Canada and sells to the Canadian wholesaler with the usual allowance for profit to the manufacturer at C$25.00. The Canadian-produced sunglasses appear in retail sunglass outlets priced from C$30.00 to C$35.00.

Questions:

1. If the Italian manufacturer sells the sunglasses to the Canadian wholesaler for C$17.00 per pair, please provide a detailed analysis of whether unfair trade practice has occurred.

2. Describe the process for determining Anti-Dumping duties in Canada?

Answer rating: 100% (QA)

Answer Solution Example 1 iYes the dumping has occurred here ii The Italian manufacturer sells to wh... View the full answer