Which agency determines whether imports are sold at less than fair value?

Prepare for the Legal Environment of Business 1 Exam. Utilize flashcards and multiple choice questions with detailed explanations. Sharpen your knowledge for the test and enhance your legal understanding in business!

The International Trade Administration (ITA) is responsible for determining whether imports are sold at less than fair value, a practice known as "dumping." When a foreign producer sells goods in the U.S. at a price lower than the normal value — usually the price in the home market — this can have harmful effects on domestic industries. The ITA conducts investigations to assess whether dumping is occurring, and if it finds that it is, it can recommend the imposition of anti-dumping duties to level the playing field for domestic producers.

The ITA operates under the Department of Commerce, which oversees a range of trade-related functions, including trade enforcement and compliance. While the Department of Commerce as a whole sets broad trade policy and manages international trade, the specific function of investigating dumping falls to the ITA.

Other agencies play different roles. The Federal Trade Commission focuses on consumer protection and preventing anti-competitive business practices, but it does not handle trade-specific duties like the determination of fair value in imports. U.S. Customs and Border Protection, meanwhile, is primarily responsible for enforcing customs laws and regulations, including the collection of tariffs and preventing illegal imports, but it does not conduct the investigations necessary to determine dumping.

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