Q. Consider the following statements with respect to anti-dumping duty:
1.It is a tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
2.It can reduce the international competition of domestic companies producing similar goods.
3.The International Monetary Fund (IMF) plays an important role in the regulation of anti-dumping measures.
Which of the statements given above are correct?
Answer: B
Notes:
Statement 1: An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
Statement 2: In the long-term, anti-dumping duties can reduce the international competition of domestic companies producing similar goods.
Statement 3: The statement is incorrect. The World Trade Organization (WTO) plays an important role in the regulation of anti-dumping measures.
