Final answer:
The action to impose antidumping taxes to protect the U.S. laptop manufacturing industry inadvertently resulted in companies relocating production overseas. Major firms like Apple, Toshiba, and IBM moved their manufacturing facilities in response to increased costs and anticipated higher laptop prices. This case exemplifies the complexity and potential drawbacks of protectionist policies in a global economy.
Step-by-step explanation:
The discussion provided encompasses the impact of protectionist policies on laptop manufacturing and the subsequent shift of production facilities due to the imposition of antidumping taxes. A computer company with a product line of affordable, easy-to-use home computer systems deals with various marginal costs for producing each unit, as well as fixed costs. In a case where protectionist measures like the antidumping tax on flat-panel displays were introduced, the result was not a bolstered domestic industry, but rather a relocation of manufacturing plants by major companies like Apple, Toshiba, and IBM to countries with more favorable economic conditions.
This unintended consequence reflects the complex nature of international trade and economics and presents a stark example of how such policies can sometimes backfire, leaving detrimental effects on domestic employment and production capabilities. The case highlights the importance of carefully weighing the potential outcomes of protectionist actions against the global dynamics of production and trade.