Anti-dumping tariffs counter below-cost exports

Steps:

• Identify the issue: Country X sells steel below production cost, harming Y's domestic industry.
• Recall trade protection methods: Tariffs, quotas, subsidies, and currency adjustments address import threats.
• Match to scenario: Dumping involves unfair pricing, so Y needs a targeted response against predatory exports.
• Select option: Anti-dumping tariffs directly penalize such imports to restore fair competition.

Why A is correct:

• Anti-dumping tariffs, per WTO rules, impose duties on goods sold below normal value to prevent market distortion and protect local producers.

Why the others are wrong:

• B: Interest rates control domestic inflation and borrowing, not trade flows.
• C: Currency revaluation makes imports cheaper, worsening the import problem.
• D: Export subsidies boost Y's sales abroad but ignore the import damage from X.

Final answer: A