Asked by Kiana Moore on Jun 20, 2024
Verified
Dumping occurs when a producer
A) exports low priced low quality products.
B) sells an export at a higher price than it charges domestically.
C) buys raw materials at exploitatively low prices.
D) makes a predatorily attempt to bankrupt foreign competitors to establish a worldwide monopoly by selling below cost.
Dumping
The practice of selling a product in a foreign market at a price that is below the cost of production or below the price in the home market, often with the aim of driving out competition.
Producer
A producer is an individual or organization that creates goods or services for sale to consumers or other businesses.
Export
The sale of goods or services produced in one country to another country.
- Examine the effects of trade regulations on the economies of nations.
Verified Answer
FA
Frances AdamsJun 20, 2024
Final Answer :
D
Explanation :
Dumping is the practice of selling goods in a foreign market at a price that is lower than the cost to produce the goods in the home market, with the intention of driving competitors out of the market. This predatory attempt to bankrupt foreign competitors to establish a worldwide monopoly by selling below cost is referred to as predatory dumping. Therefore, choice D is the correct answer.
Learning Objectives
- Examine the effects of trade regulations on the economies of nations.