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A domestic industry has been able to prove that a foreign producer engaged in dumping. The foreig

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A domestic industry has been able to prove that a foreign producer engaged in dumping. The foreign producer?s counterargument is that It has charged higher prices in its home market simply because this is its profit-maximizing strategy in its home market where barriers to entry have given it monopoly pricing power, whereas it faces considerable competition in the domestic market and hence charges a lower price for is product in that market. Explain why this might be a reasonable economic argument yet little to fend off the imposition of antidumping penalties under current international antidumping rules.


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