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Dumping is when a company sells goods in a foreign market at a price that’s below the price it charges in its home market or below the cost of production. Anti-dumping duties are designed to offset the unfair advantage that dumping gives to foreign companies.
If a government investigates and discovers that dumping is occurring, it may enforce an anti-dumping duty. The duty amount is typically equal to the difference between the fair market value of the goods and the price at which they’re being sold.
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