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The WTO authorizes countries to take protective measures against dumping. Dumping occurs when goods are sold abroad below production costs or at prices below which the goods are sold in the exporter's home market. Dumping is considered an unfair trade practice by a company that distorts prices or profits, disrupts markets and injures local producers of competitive products.
1. Search the Internet for an example of dumping activities that have led to a country's government implementing legislation to protect the entire industry involved.
2. Provide the following elements:
The countries and the companies involved in the dumping activity
The dumping activity details
How the injured company sought restitution
The industry-wide legislation that was implemented as a result of this dumping activity
3. What are the example of how your company might use anti-dumping measures to protect itself from unfair trade practices.
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