A recurring term in economics, dumping is when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Malaysia has been accused of and found guilty of being exported to India at below its associated normal value. This restriction was imposed because when countries “dump” low-quality products that flood the Indian market, it can seriously injure profit margins and revenue of local domestic players that cannot afford to curtail their prices so low, thus weakening Indian firms due to their inability to compete with such cheap prices. This anti-dumping duty imposed will be in place for five years, allowing domestic players a fair chance of acquiring greater market share and not being subject to unfair competition.
Writer: Insha Hamid
21/06/2020
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