Reference no: EM131107792

The Snicker Company, the largest manufacturer of Snickerdoodles in State F, decided about two years ago to enter the cookie market in State G. Several small companies in State G manufacture Snickerdoodles, but the market has traditionally been very small. When Snicker entered State G’s market, it undertook a widespread advertising campaign to promote Snickerdoodle consumption and to encourage consumers to try its product by publishing coupons in newspapers that allowed purchasers to buy Snicker’s Snickerdoodles below their actual cost. As a consequence of this campaign, the sales of Snickerdoodles in State G have skyrocketed. In addition, the sales of Snickerdoodles manufactured by State G firms have more than tripled. State G’s Snickerdoodle manufacturers are, nonetheless, displeased because their market share has gone from 100 percent to 30 percent in two years. Concerned with this loss, they have asked State G to impose anti-dumping duties on Snicker, since its snickerdoodles are being sold below cost. Both State F and State G are members of the WTO. Should State G impose anti-dumping duties on Snicker? Explain.