Protecti

onism

Dumping
Presented by
Juliana & Kevin J

What is dumping?
Selling products in a foreign market
at below their cost of production

Disadvantages of protectionism
In the short run:
Dumping enables
domestic consumers
to gain benefits from
the low price. If
theres a
protectionism of high
tariff, then the benefit
of the consumers will
be shorten.

Advantages of protectionism
In the long run:
The dumping company may gain a monopoly and ra
ise the price of the product which will be harmful to
the domestic consumers.

Reasons of setting protectionism

1.Prevent dumping.
2.Protect domestic consumers and
producers.

Example
China sells solar
panels at a price
which is lower
than the cost of
production of the
same product in
USA.
USA considered
this action as a
dumping and
imposed a high
tariff on the solar