1 answer

Dumping refers to a country selling a good abroad at a price that is below its...

Question:

Dumping refers to a country

selling a good abroad at a price that is below its cost and lower than the price charged in the domestic market.

imposing a retaliatory tariff against the subsidized products of a foreign country.

all of the above

selling a good abroad at a price that is above its cost and higher than the price charged in the domestic market.

a and c


Answers

Dumping refers to a country selling a good aboard at a price that is below its cost and lower than the market price Charged in the home market. Suppose, Country A is exporting a good in Country B at a price which is lower than the cost of production of the good and which is lower than the price Country A charges for the good in its domestic(home market). Then, Country A is said to dump its good in Country B.

Hence, First Option is correct i.e., selling a good abroad at a price that is below its cost and lower than the price charged in the domestic market.

.

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