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Assignment:
The Indonesia government was doubtful of China's cost competitiveness in footwear manufacturing. They conducted an investigation and found that China government has been actively funding research institution on technology enhancement. Concurrently, special subsidies were also provided to a poor region in China; transforming it into a special industrial zone for apparel and footwear manufacturing to create employment for the population in the vicinities.
With the new found information, Indonesia intends to apply countervailing duties against China made footwear. In your opinion, do you think the application of countervailing duties by Indonesia is justifiable? Provide reasons to support your answer.
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