What is the impact of antidumping duties on imported products?

Show Answers

They have been eliminated by the World Trade Organization.They cause a reduction in consumer welfare for households within the country.They are enforced only by developed nations, not by developing ones.They lead to cheaper prices for consumers domestically.They encourage increased competition among local producers.

Explanation

Antidumping duties typically raise the price of imported goods, which reduces consumer surplus for domestic buyers. Contrary to option A, the WTO allows such duties under certain conditions. Option C is incorrect because both developed and developing countries may impose these duties. Option D is wrong since these duties generally increase prices rather than lowering them.