In a spatially differentiated market the actual rate of importation, in the absence of government intervention, exceeds the socially optimal rate for two reasons: either domestic production that would be socially advantageous may not be viable at all from a private point of view, or an existing...

Starting with a review of recent antidumping measures protecting the U.S. steel industry, the paper investigates the question as to whether antidumping measures are in the interest of the importing country as a whole. It is being argued that at times of cyclical excess capacity some form of...

Authors of price theory texts usually state that the coeffecient of (price) cross elasticity of demand is a measure for the "closeness" of substitutes or complement: for the closeness of substitutes when the sign of the cross elasticity between the two commodities is positive, and for the...

In March 1977, the Government of Canada introduced Bill C-42 proposing a second phase of amendments to the Combines Act. This paper examines Section 31.76 of the bill which under certain conditions would exempt specialization agreements from the general prohibition of arrangement in restraint of...

This paper presents an analysis of two important decisions of the anti-dumping Tribunal concerning the importation of hydraulic turbines from the USSR and hydro-electric generators from Japan. This study attempts to determine the social cost that anti-dumping measured would have imposed on the...

In a small open economy trading perfect substitutes at given world-market prices, monopoly power cannot exist unless the domestic market is protected. This assessment of monopoly changes radically if we relax the small-country assumption and/or the assumption that imports are perfect substitutes...

Why would it be in the interest of any country to prevent producers in other countries from supplying it with imports that are "abnormally cheap"? Three types of domestic distortions are discussed: a pure distortion of domestic income distribution; short-sightedness of domestic buyers; and price...

Canada is currently changing its antidumping law. This paper shows why and estimates the potential consequences of the proposed changes. The paper explains why deterrence of dumping is especially important to domestic producers of capital goods who have made a concentrated lobbying effort trying...

Trade theorists have recognized for thirty years that domestic monopoly may cause a domestic price distortion with a result that a country's foreign trade is not optimized under laisser-faire conditions. The alleged distortion disappears, however, when free trade exists. The distortion remains...