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Economics of Anti-Dumping Import Tariffs

AS, A Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

In this revision video we look at the issue of import dumping and the response of countries using retaliatory anti-dumping duties.

Import dumping happens when firms sell their exports at below average cost or below their normal prices in the home market. The former implies predatory pricing – which is illegal. Dumping might be part-financed by government subsidies.

An anti-dumping tariff is an additional import tax (import duty) above normal import tariffs that allows a country to act against goods sold at less than their normal value, defined as the price for 'like goods' sold in the exporter's home market.

Economics of Anti-Dumping Import Tariffs

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