Economics Trade Barriers Questions
Anti-dumping refers to the practice of selling goods in a foreign market at a price lower than their normal value, often below the cost of production. It is considered a trade barrier because it creates an unfair advantage for the exporting country by undercutting the prices of domestic producers in the importing country. This can lead to a decline in domestic industries and job losses. To counteract this, importing countries may impose anti-dumping duties or tariffs on the dumped goods to protect their domestic industries from unfair competition.