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1 Introduction
We discuss the definition of import quotas
and the definitions of other nontariff barriers and the new Protectionism
Understand the political economy of
protectionism
Know the definition of strategic trade and
industrial policies
Introduce the Uruguay Round and
Key Terms
Nontariff trade barriers New protectionism International cartel Persistent dumping Predatory dumping Sporadic dumping Export subsidy Infant industry Strategic trade policy Game theory
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3.4 Dumping
Dumping is the export of a commodity at below cost or at least the sale of a commodity at a lower price abroad than domestically. Dumping is classified as persistent, predatory, and sporadic. Persistent dumping Sporadic dumping Predatory dumping
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3.4 Dumping
It is often difficult to determine the type of dumping, and domestic producers demand protection against any dumping. They discourage imports and increase their own production and profits (rents). In some cases of persistent and sporadic dumping, the benefit to consumers from low prices may actually exceed the possible production losses of domestic producers. These restrictions usually take the form of antidumping duties to offset price differentials, or the threat to impose such duties.
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7 Discussion Questions
What is meant by voluntary export restriction? What are the technical, administrative, and other nontariff barriers to trade? How do they restrict trade? What are international cartels? How do their oerations restict trade? What the conditions for the success of the cartel? What are the different forms of dumping? What conditions are required to make dumping possible? Whay do nations subsidize exports? To what problems do these subsidies give rise?
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THANK YOU !
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