Combating Dumping with Targeted Trade Barriers

Steps:

• Identify dumping as selling imports below fair value to undercut domestic producers.
• Evaluate options for stopping low-price imports of a specific good.
• Consider direct import restrictions versus indirect economic measures.
• Select the method that fully blocks the targeted good's entry.

Why A is correct:

• An embargo bans all imports of the good, directly halting dumping as defined under WTO anti-dumping rules, preventing any low-price entry.

Why the others are wrong:

• B devalues currency to raise all import prices but doesn't target one good and may not fully stop dumping.
• C raises interest rates to curb inflation or spending, with no direct impact on specific imports.
• D subsidizes domestic producers to improve competitiveness but allows dumped imports to continue entering the market.

Final answer: A