Tariffs and Dumping

Economic nationalism is more likely to be a product of trade controlled by governments than of trade left to free individuals seeking profitable exchange wherever they may find it. Tariffs and Dumping The term dumping carries a fairly definite impression to most people, but to define it is not easy. When goods from one country are sold in another at prices below the *The London Newsletter, V. R. Kimmitt, Editor, May, 1952, p. 4. 56 cost of producing them, the process is commonly called dumping. Presumably it doesn't matter whether it is an individual or a firm or a government that does it; it is still called dumping. The argument against dumping is that domestic pro ducers cannot meet "unfair" competition from abroad. The remedy often suggested is to raise a tariff wall against these products by an amount equal to the differ ence between what foreign producers are willing to sell for and their costs of production. Sometimes the com parison is even made with our costs of production.