SSC Economics Sample Paper NCERT Sample Paper-2

  • question_answer
    Anti-dumping duties includes the feature:
    1. It is a duty which is imposed by way of additional import duty on goods
    2. Sometimes the cost of the goods is even below the cost of production in the country of origin
    Which of these statements is/are correct?

    A) Only 1  

    B) Only 2

    C) Both 1 and 2     

    D) neither 1 nor 2

    Correct Answer: C

    Solution :

    Dumping is said to occur when the goods are exported by a country to another country at a price lower than its normal value. This is an unfair trade practice which can have a distortive effect on international trade. Anti-dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti-dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti-dumping measure as an instrument of fair competition is permitted by the WTO. In fact, anti-dumping is an instrument for ensuring fair trade and is not a measure of protection per se for the domestic industry. It provides relief to the domestic industry against the injury caused by dumping.

You need to login to perform this action.
You will be redirected in 3 sec spinner