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...

State trading is defined as selling in competition with foreign producers at prices that are affected by government control. The paper applies the domestic distortions approach of international trade theory. At times of weak demand a country can increase national welfare by directing domestic...

In many ways, the international regulation of dumping looks like a model of successful multilateral rule making. Yet the systemic justification of anti-dumping measures is dubious, and international rule making has perversely served to expand the scope for regulatory protection. 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...

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...