A country that believes an imported product is being sold in its market for a price lower than the cost of production for the product may impose a(n)________ in retaliation.

Question

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When a country believes that an imported product is being sold in its market for a price lower than the cost of production for the product, it may impose an antidumping duty in retaliation. This type of duty is intended to level the playing field for domestic producers by increasing the price of the imported product to a level that is more consistent with the cost of production. A countervailing duty is imposed in response to subsidies granted by the exporting country to its producers, while an ad valorem tariff is a duty imposed as a percentage of the value of the imported product. A compound tariff is a combination of an ad valorem tariff and a specific tariff.

A Country That Believes an Imported Product Is Being Sold