Question

In terms of international economics, what is the difference between dumping and anti-dumping?

Answer 1

Dumping is a practice that is used by a foreign seller in nations where the seller is able to export its product, in which the export price of the product is much lower than the price charged by it from its own domestic consumers. This price may also be lower than the cost of production as well, when the foreign government supports dumping, although unofficially. This practices has its advantage in ousting competition in the foreign market.

To the country where such products are dumped, the government may use anti-dumping practices such as imposing a duty/tariff when the products are subsidized by the government of the foreign nation. These anti-dumping duties are aimed at discouraging the dumping practice.