Asked by Lauren Dufour on May 10, 2024

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When a foreign competitor is able to unfairly sell a product at a lower price because it receives subsidies from the host government or exploits, lower labor or lower environmental standards, it is called:

A) Free market competition
B) Competitive advantage
C) Enterprise unionism
D) Social dumping

Social Dumping

A practice where businesses move operations to countries with lower labor standards or wages to reduce costs, often criticized for exploiting workers and undermining labor rights.

Subsidies

Financial support extended to an organization, industry, or individual by a government to promote desirable activities or reduce costs.

  • Grasp the concepts of social dumping and its implications on international competition and labor markets.
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JF
Julius FassbinderMay 12, 2024
Final Answer :
D
Explanation :
Social dumping refers to the practice of a foreign competitor selling products at a lower price because it is able to exploit lower labor or lower environmental standards or receive subsidies from the host government, giving them an unfair advantage over competitors who adhere to higher standards. This can lead to job losses and market distortions in the affected industry.