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What is "Dumping"? In what ways could the EU's anti-dumping policy be said to be problematic?
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What is "Dumping"? In what ways could the EU's anti-dumping policy be said to be problematic? Dumping is a technical term used in countries where exports are purposely sold at prices below their cost of production. Dumping can occur due to excess capacity in an industry. Another main reason that dumping occurs is due to companies attempting to quickly gain market share at the expense of domestic businesses. Dumping is unfair to businesses as it is seen as a form of unfair competition, many governments act to protect their own businesses from the effects of dumping. They do this by trying to impose tariffs on goods in order to reduce any dumping occurring. The time when dumping is at its strongest is when the foreign nation is in a recession. The foreign producer does not want to slow down its capability of production in its home country because it anticipates an...
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