What is the concept of anti-dumping?

Anti-dumping refers to measures taken to protect domestic industries from foreign companies that export products at prices lower than their fair market value, often referred to as "dumping." When a foreign company sells goods in another country at a price significantly lower than its domestic market price or below the cost of production, it can harm local businesses that cannot compete with these lower prices.

The protectionist tariff on imports priced below fair market value serves as a legal action taken to alleviate this issue. This tariff is intended to raise the cost of the dumped imports, enabling domestic producers to compete more effectively. The goal is to maintain fair competition and ensure that domestic industries can thrive without the threat of unfair pricing practices from foreign competitors.

Other choices provide misleading concepts; for instance, a tax on exports would not relate to anti-dumping as it focuses on limiting exports rather than addressing unfair pricing in an importing country. A subsidy to domestic producers refers to financial support rather than measures against dumping practices, and regulations on unfair pricing in domestic markets would be more about controlling local competitive practices rather than specifically addressing foreign pricing strategies. Thus, option B accurately encapsulates the essence of anti-dumping policies.