Tuesday, February 26, 2013

Europe Investigates Dumping in Chinese Solar Panels

Last year the New York Times reported that European officials are investigating whether Chinese firms were "dumping" their exports of solar panels in European markets.  Dumping is basically selling a product or service below cost in a foreign market.  The typical response is for the nation importing the product or service to place a tax (in international markets this is called a tariff) to offset the very low price (that is below cost) and can make the market more economically efficient.  Of course showing that dumping has occurred is a very difficult task.

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