The recent crisis has led to demand recession in world economy. If we take Indian example then we all know that Indian economy is growing at a robust rate of around 7% so it becomes a very tempting proposition to for global suppliers to dump their goods in India. hence it is of critical importance to ensure that we do not becoming a dumping ground for cheap goods destroying our domestic industry in this period of global gloom.China recently raised the tariffs on number of goods such as luxury watches from 10% to 30%, cosmetics from 20% to 50% to avert such possiblities.
1. Price Discrimination<br />Different Price to Different Customer<br />
2. Dumping<br /><ul><li>Effects of Dumping
3. Recent safeguards by some countries.</li></ul> Example - China<br />
4. Loss of Consumer Surplus<br />New Consumer Surplus<br />Loss of Consumer Surplus<br />ConsumerSurplus<br />S<br />S<br />P1<br />P<br />P<br />D<br />D<br />Q<br />Q<br />Q1<br />