| Antidumping is a means to restrict international
trade without tariffs. It is supposed to protect significantly endangered
domestic industries in cases where foreign firms' prices are below the cost of production. Since countries can rule domestically
whether native industries are in danger and whether foreign firms' prices are below the cost of production, and since the foreign
cost of production cannot be easily known by domestic courts, the institutional process surrounding the investigation and
determinations has significant impacts beyond the antidumping duty. Since domestic firms can file an antidumping suit and trials
are costly and the decisions are difficult to foresee, there is a large potential of strategic actions and distorted market
outcomes.
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