Case: Protecting U.

S Magnesium

1. Who gains most from the anti-dumping duties levied by the United States on imports of
magnesium from China and Russia? Who are the losers?

It is quite apparent that the local/domestic companies in the United States will be the ones
benefiting from the antidumping duties. The reason is the domestic businesses have a low chance of
effectively competing the low prices and production costs of China and Russia. The losers of this
situation will be the foreign companies especially from China and Russia who had a cost advantage
because they had excess production to sale at a relatively lower price than the standard price in the
industry. Now these companies will need to re-think their pricing strategy because the antidumping
duties have lessened their profit margins.

2. Are these duties in the best national interests of the United States?

They need to regain footing and the antidumping duties don’t allow this. These duties are concluded
to not be in the best national interest of the United States. They promote inefficiency and push
outgrowth of foreign companies, they could potentially trigger trade wars, and are likely to be
improperly implemented. There duties do not promote globalization.

3. Suggest a policy that will be in favor of the United States over China and Russia.

For me, the policy that will be in favor United States over China and Russia is Anti-dumping duties, in
the context of international trade, dumping is variously defined as selling goods in a foreign market
at below their costs of production or as selling goods in a foreign.