What is the intended purpose of anti-dumping duties?

What is the intended purpose of anti-dumping duties?

• A. To promote local content in products
• B. To protect domestic industries from unfair competition
• C. To encourage the export of local goods
• D. To limit the number of imports

Answer: (B)

The intended purpose of anti-dumping duties is to protect domestic industries from unfair competition. When foreign companies sell products in a domestic market at prices lower than their normal value, often due to subsidies or predatory pricing strategies, it can harm local businesses that cannot compete with these artificially low prices. By imposing anti-dumping duties, the government aims to level the playing field, allowing domestic producers to compete fairly and maintain their market share. This mechanism supports the overall health of the domestic economy by preventing the unfair undercutting of local prices, which can lead to job losses and the decline of industries that are unable to sustain themselves against such practices.

The intended purpose of anti-dumping duties is to protect domestic industries from unfair competition. When foreign companies sell products in a domestic market at prices lower than their normal value, often due to subsidies or predatory pricing strategies, it can harm local businesses that cannot compete with these artificially low prices. By imposing anti-dumping duties, the government aims to level the playing field, allowing domestic producers to compete fairly and maintain their market share. This mechanism supports the overall health of the domestic economy by preventing the unfair undercutting of local prices, which can lead to job losses and the decline of industries that are unable to sustain themselves against such practices.