Question

For _____ to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Answer 1

Anti-dumping laws impose tariffs on goods sold below the cost of production in an importing country, if it's proven to harm domestic producers. These measures comply with WTO rules to prevent unfair trading practices.

Step-by-step explanation:

For anti-dumping laws to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product. Anti-dumping laws are a protectionist trade measure taken by a government to protect the domestic industry from foreign competition selling goods below their cost of production. Under World Trade Organization (WTO) rules, these practices are considered unfair, and countries can file a complaint with the WTO if they believe they are victims of dumpinDumping can harm the domestic industry by undercutting prices and eroding the market share of domestic producers. To counteract this, anti-dumping tariffs or duties are imposed on the imported goods to elevate their price to a more competitive level with domestic products, thereby attempting to level the playing field and mitigate the harmful effects of dumping.