Question

barriers to trade are also adopted in order to protect domestic industries from foreign competition. the text below describes an example of policies designed to prevent a trade practice known as dumping. complete the text. a foreign producer might try to gain an advantage over domestic producers by dumping its products, which means selling goods at a price lower than their actual value. since the foreign good is, people are more likely to buy the foreign company gains customers and may drive domestic competit more expensive to protect domestic producers, a country might impose anti - dumping duties. these are tariffs on goods from countries that have been found to be dumping their products. the extra tax the price of the foreign product, making people more likely to buy the instead.

Explanation:

• When a foreign producer dumps products (sells at a price lower than actual value), the foreign good is cheaper. Consumers are price - sensitive, so they are more likely to buy the cheaper foreign good.
• Anti - dumping duties (extra tax) increase the price of the foreign product. When the foreign product's price is increased (due to the tax), consumers are more likely to buy the domestic product instead.

Answer:

1. cheaper
2. increases
3. domestic product