Write short notes on :
a)Dumping
b) Anti Dumping Laws.
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9. Anti-dumping laws block imports that are sold below the cost of production. True or False.
a. False
b. True
10. The reasons behind dumping in international trade include:
a. market prices are set by demand and supply, not by the cost of production.
b. dumping can be part of a long-term strategy.
c. both a and b
The two primary issues in international commerce are dumping and tariffs. Dumping is the international form of predatory pricing, prohibited by the WTO. Tariffs are taxes on imported goods, effectively increasing the price of these goods. A domestic company might be able to utilize the regulations to gain a competitive advantage. Dumping, while illegal, would offer products to consumers at very low prices. As a consumer, what is your opinion of this? Explain your reasoning.
