1. Why do you think that the Chinese apparently have a cost advantage in the production of pencils?

2. Do you think that lobbying the U.S. government to impose antidumping duties on imports of pencils from China is a good way to protect American jobs? Who benefits most from such duties? Who loses? What alternative policy stance might the government take?

3. By establishing facilities in Mexico, Dixon became a multinational company. Why has Dixon become a multinational? What are the economic benefits to Dixon of becoming an international business?

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4. Now that Dixon has a production operation in China, why does it not simply import finished pencils from China to the United States, instead of making those pencils in Mexico?