Which type of measure involves additional costs on imports that are sold below their production costs?

Which type of measure involves additional costs on imports that are sold below their production costs?

• A. Import quotas
• B. Administrative procedures
• C. Anti-dumping duties
• D. Voluntary export restraints

Answer: (C)

The measure that involves imposing additional costs on imports sold below their production costs is anti-dumping duties. This type of duty is specifically designed to protect domestic industries from foreign competitors who sell their products at artificially low prices, a practice known as dumping. When a foreign company exports a product to another country at a price lower than the market value or its production cost, it can undermine the domestic market by enabling these cheaper imports to attract consumers away from local products. To counter this, anti-dumping duties are levied on these imports to raise their prices closer to the normal value, thereby protecting local businesses and ensuring fair competition. This mechanism serves to level the playing field for domestic producers, allowing them to compete more effectively against unfairly priced imports. In essence, anti-dumping duties are a safeguard that aims to maintain fair trade practices and protect a country's economic interests.

The measure that involves imposing additional costs on imports sold below their production costs is anti-dumping duties. This type of duty is specifically designed to protect domestic industries from foreign competitors who sell their products at artificially low prices, a practice known as dumping.

When a foreign company exports a product to another country at a price lower than the market value or its production cost, it can undermine the domestic market by enabling these cheaper imports to attract consumers away from local products. To counter this, anti-dumping duties are levied on these imports to raise their prices closer to the normal value, thereby protecting local businesses and ensuring fair competition.

This mechanism serves to level the playing field for domestic producers, allowing them to compete more effectively against unfairly priced imports. In essence, anti-dumping duties are a safeguard that aims to maintain fair trade practices and protect a country's economic interests.