Q. The primary purpose of imposing anti-dumping duties is to:

[A] Increase government revenue

[B] Protect domestic industries from unfair competition

[C] Reduce imports overall

[D] Impose fine on foreign companies

Answer: B
Notes:

Explanation – The primary purpose of imposing anti-dumping duties is to protect domestic industries from unfair competition. Dumping occurs when foreign companies sell goods in a foreign market at a price below their domestic market price or below their cost of production. This can harm domestic industries by undercutting their prices and leading to market distortion. To counteract this, governments may impose anti-dumping duties on these imported goods. Anti-dumping duties help safeguard domestic industries from unfair competition and ensure a level playing field in the market.

Source: AIR

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