What is the dumping argument for protection from international trade?
A) Domestic firms must be protected until they gain a comparative advantage.
B) Any firm necessary in wartime must be protected.
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.
D) Domestic jobs must be protected from competition from low-paid foreign workers.
E) Foreigners selling products in the economy limit the nation's diversity and stability.

Question

Quizplus · Accepted Answer

The dumping argument is based on the idea that foreign producers may deliberately sell their goods below cost in order to drive domestic firms out of business and ultimately gain a monopoly in the market. To protect domestic industries from such unfair competition, governments may impose anti-dumping duties on the imported goods.

What Is the Dumping Argument for Protection from International Trade