In 2013, the United States accused India, China, and three other Asian countries of dumping shrimp in the United States at prices below their costs, and proposed duties (tariffs) as high as 62.74% (Uttara Choudhury, “U.S. Sets Preliminary Anti-dumping Duties on Indian Shrimp,” First Post Business, June 4, 2013). Suppose that these countries were subsidizing their shrimp fishers. Show in a diagram who gains and who loses in the United States (compared to the equilibrium in which those nations do not subsidize their shrimp fishers). Now use your diagram to show how the large tariff would affect the welfare of consumers and producers and government revenues.
In 2013, the United States accused India, China, and three other Asian countries of dumping shrimp in the United States at prices below their costs,”
by | Mar 12, 2022 | Uncategorized
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