what is Anti-dumping duty.give a birealify introduction
Answers
Answer:
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market. For protection, many countries impose stiff duties on products they believe are being dumped in their national market, undercutting local businesses and markets.
How an Anti-Dumping Duty Works
In the United States, the International Trade Commission (ITC), an independent government agency, imposes anti-dumping duties based upon investigations and recommendations from the Department of Commerce. Duties often exceed 100% of the value of the goods. They come into play when a foreign company is selling an item significantly below the price at which it is being produced. Part of the logic behind anti-dumping duties is to save domestic jobs, but they can also lead to higher prices for domestic consumers and reduce the international competition of domestic companies producing similar goods.
KEY TAKEAWAYS
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
The World Trade Organization does not regulate the actions of companies engaged in dumping, but instead focuses on how governments can—or cannot—react to dumping.
Answer:
dumping in economics is a kind of injuring pricing especially in the context of international trade . it occurs when manufacturers export a product to another country at a price below the normal price with an injuring effect.