What is "anti-dumping duty"?

An anti-dumping duty is a protective tariff imposed by a government on foreign imports that are priced below fair market value, which is often considered as the normal value of the product. This measure is taken to protect domestic industries from unfair competition that arises when foreign companies sell products at artificially low prices, typically because of government subsidies or other support.

The rationale behind an anti-dumping duty is to level the playing field for domestic producers by ensuring that imported goods do not undercut local prices to the extent that they threaten local industries. By imposing this tariff, the government aims to mitigate the adverse effects of dumping, which can lead to job losses and reduced market share for domestic companies. This makes the correct answer the ideal representation of what anti-dumping duties are intended for.

The other options refer to different forms of tariffs or fees that do not align with the specific economic practice of combating dumping, which is why they do not accurately describe the nature of an anti-dumping duty.