What are antidumping policies designed to protect against?

Antidumping policies are specifically designed to protect domestic industries from foreign imports that are priced below fair market value. This practice, known as dumping, occurs when a foreign company sells products in another country at a price lower than what they charge in their home market or below their cost of production. Such pricing strategies can harm domestic businesses by undercutting their prices, leading to decreased sales and potential job losses.

By implementing antidumping measures, governments can impose tariffs or duties on the imported goods deemed to be unfairly priced, thus leveling the playing field for local producers. This form of protectionism is aimed at ensuring that domestic companies can compete fairly and sustainably, promoting a balanced and healthy economic environment.

In this context, the other options do not directly address what antidumping policies aim to combat. While unfavorable trade agreements, domestic companies underperforming, and global economic downturns can have their own negative impacts on a country's economy, they do not specifically relate to the core function of antidumping regulations.