Predatory Dumping in Subsidizing Imports Predatory dumping is “a situation in which a Foreign firm sells at a price below its average costs with the intention of causing Home firms to suffer losses and, eventually, to leave the market because of bankruptcy.
It also states that the World Trade Organization (WTO) rules allow countries to “apply a tariff any time a foreign firm dumps its product on a local market.” Why would a home country punish a foreign country for subsidizing imports? Do you agree with this policy? Explain in 5 sentences. Predatory dumping is a type of anti-competitive behavior in which a foreign company prices its products below market value in an attempt to drive out domestic competition.