Anti-Dumping Duty
Definition of 'Anti-Dumping Duty'A protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. In the |
|
Investopedia explains 'Anti-Dumping Duty'Some people believe that a foreign company will even lower the price of the product it is "dumping" below its own cost to manufacture the good in order to drive domestic competitors out of business and later raise prices. Even when a foreign company sells its exports at the same or a higher price than they sell for in the company's home country, the importing country can decide that the exporter is guilty of "dumping" and impose an anti-dumping duty.Anti-dumping duties are believed to distort the market because the government cannot determine what constitutes a fair market price for any good or service. This is because fair market value is whatever price the market will bear as determined by supply and demand. |
Related Definitions
Articles Of Interest
-
What Is International Trade?
Everyone's talking about globalization, so we explain what is it and why some oppose it. -
Globalization: Progress Or Profiteering?
Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ... -
The Basics Of Tariffs And Trade Barriers
Everything you need to know - from the different types of tariffs to their effects on the local economy. -
Do Cheap Imported Goods Cost Americans Jobs?
Flooding the market with cheap products can mean job losses and even market collapse - but dumping isn't as threatening as it seems. -
What Is The World Trade Organization?
The WTO sets the global rules of trade. But what exactly does it do and why do so many oppose it? -
NAFTA's Winners And Losers
Read on to find out who this free-trade agreement helped, and who it hurt. -
Why The Consumer Price Index Is Controversial
Find out why economists are torn about how to calculate inflation. -
Predict Inflation With The Producer Price Index
Find out how the PPI can be used to gauge the overall health of the economy. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze.
Free Annual Reports