Reasons for protection arguments (1 Viewer)

[enigma_1]

One of the arguments for protection is:

To prevent dumping of imports below factor cost. But what is the opposing argument to this?

 

[BiasedBuffalo]

There isn't really an opposing argument that is substantial AFAIK - dumping pretty much screws the domestic market over.

It does benefit consumers in the short term but the lower prices will drive domestic producers out of business so in the long run, consumers will lose out too.

Forgive me if I misunderstood your question.

 

[-kc]

One of the main ideas that economics focuses on is efficiency.
Sure, protection can be a vital tool to prevent dumping, but it can also be shielding a reality where domestic industries may simply be inefficient and not economically viable on an international playing field.