Asked by Michael Ariestan on May 30, 2024
Verified
________ involves a country selling its exports at a price lower than its cost of production.
A) Dumping
B) Having an absolute advantage
C) Having a comparative advantage
D) An export quota
Dumping
The practice of a company selling a product in a foreign market at a price lower than its cost of production or lower than the price in its domestic market.
- Elucidate the financial repercussions associated with dumping and the implementation of anti-dumping policies.
Verified Answer
DM
Daivik MishraMay 30, 2024
Final Answer :
A
Explanation :
Dumping occurs when a country or company exports a product at a price that is lower than the price it normally charges on its own home market or is lower than its cost of production. This is often done to gain market share in a foreign market or to offload excess production.
Learning Objectives
- Elucidate the financial repercussions associated with dumping and the implementation of anti-dumping policies.