Answer to Question #119635 in Economics of Enterprise for Vedansh

Question

According to less developed economies,dumping is not a preferable policy.why is it still in operation?China is doing dumping from long time,how it will change the world trade after covid19? Elaborate with facts?

Answer 1

Dumping is used to avoid introducing the economy into crisis as a result of overproduction of goods.

China has formed a dumping policy due to the fact that production in this country far exceeds domestic consumption. After COVID-19, China’s policy will not change.

However, some of the countries that are most affected by the economic crisis caused by the pandemic may take advantage of dumping policies when selling goods released in the previous period to launch their own economy.