Why nations sometimes restrict trade Suppose there is a policy debate over impos

Question

Why nations sometimes restrict trade Suppose there is a policy debate over imposing trade restrictions or imported ball bearings in the United States. Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings. The lobbyist claims that producers in other countries sell ball bearings below cost in the international market while charging much higher prices in their domestic markets. The lobbyist is using the argument to justify the trade restriction on ball bearings.

Explanation / Answer

Anti dumping

Anti dumping is a measure to rectify the situation arising out of the dumping of goods by foreign countries in US at very cheap prices and its trade distortive effect. Thus, the purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade.

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