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.
© 2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.