Final answer:
Retaliatory trade restrictions are not made for dumping because price competition is protected by the WTO.
Step-by-step explanation:
Retaliatory trade restrictions are not made for dumping because price competition is protected by the World Trade Organization (WTO).
Dumping refers to selling goods below their cost of production. Anti-dumping laws block imports that are sold below the cost of production by imposing tariffs that increase the price of these imports to reflect their cost of production. Since dumping is not allowed under WTO rules, nations that believe they are on the receiving end of dumped goods can file a complaint with the WTO.
Price competition is an essential component of international trade. It allows countries to compete with one another based on factors such as quality, innovation, and efficiency. By protecting price competition, the WTO helps to ensure a level playing field and fair trade practices among nations.