Final answer:
The statement regarding the imposition of countervailing duties as a punishment for engaging in unfair price competition, as specified in the Environment-Related Challenges and Pricing Decisions section, is false. Option b
Step-by-step explanation:
The statement regarding the imposition of countervailing duties as a punishment for engaging in unfair price competition, as specified in the Environment-Related Challenges and Pricing Decisions section, is false. Countervailing duties are actually tariffs levied on imported goods to offset subsidies made to producers of these goods in the exporting country.
On the other hand, anti-dumping laws are the ones that handle unfair price competition. They block imports sold below the cost of production and impose tariffs that would increase the price of these imports to reflect their cost of production. These anti-dumping measures are in place to prevent the practice of dumping, which is selling goods below their cost of production.
This practice is deemed unfair under World Trade Organization (WTO) rules. Countries can file complaints with the WTO if they believe they are being subjected to dumped goods. However, it's worth noting that in economic theory, the rationale for anti-dumping laws is challenged since they may protect domestic industries at the expense of the consumer who benefits from low prices. option b