Answer to Question #119636 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

Less developed economies do not prefer dumping yet the policy is still in operation because the imported commodities come at low prices which favour a majority of the low income earning individuals in the importing country.

Since the COVID 19 pandemic began, international trade has been ban, and thus, China has not been exporting its cheap goods to less-developed nations. Therefore, the less developed counties have been finding local solutions to their needs as an alternative to the cheap imported products from China. Therefore, after COVID 19, there is likely to be low importation of cheap goods from China.