Question

Jitensha Bike Parts was called to testify before the U.S. Congress. The CEO of Jitensha defended the company against an accusation that it was dumping parts on the U.S. market. In her testimony, the CEO claimed _________________. Using traditional guidelines, Congress determined that Jitensha was not dumping.

Answer 1

Answer:

the company includes at least 10% of overhead costs and an 8% profit margin in all the sales.

Explanation:

Dumping occurs when companies export their products at a lower price than domestic sales price. American laws prohibit dumping and require foreign firms to include 10% overhead costs + an 8% profit margin in the prices of the goods they export to the US.