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Arguments in Favour of Protectionism Conference 2019
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What are the main arguments in favour of a country imposing one or more "protectionist" be missed!
measures? The main arguments supporting protectionism are outlined below. Learn more ›
Dumping is a type of predatory pricing behaviour and can often be a concern for Learn more ›
domestic firms facing overseas competitors who are looking to offload their spare
production in international markets at very low prices. Goods are dumped when they are
sold for export at less than their normal value. The normal value is usually defined as the
price for the like goods in the exporter’s home market. In the short term, consumers Popular Content
benefit from lower prices of the foreign goods, but in the longer-term, persistent
undercutting of domestic prices can force a home-based industry out of business and
30 Theories & Models for AQA
then allow the foreign firm to establish itself as a monopoly. Once this is achieved the
A Level Business
foreign owned monopoly is free to increase their prices and exploit the consumer.
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Protection via tariffs on 'dumped' goods can be justified to prevent long-term exploitation
of the consumer.
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