Principles of Macroeconomics / Unit 17 MAC 1626 short lesson, about 20 seconds
Anti-Dumping and the Environment
Captions available
The idea
Dumping means selling below the cost of production, and anti-dumping tariffs raise the price to that cost. A second argument says firms relocate to weak-standard countries.
In practice
But prices are set by supply and demand, not cost, so price can fall below cost unintentionally.
Where people slip
And compliance is one or two percent of plant costs, so that relocation is not what evidence shows.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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