Question 29
International TradeThe meaning of 'Dumping' is selling goods in a foreign market
- A.at a price below that received in the home market
- B.at a price higher than that received in the home market
- C.at a price equal to the costs price in the home market
- D.in order to encourage indigenous producers
- E.at a price equal to the selling price in the home market.
Show the answer and explanation
Answer: A (at a price below that received in the home market)
Explanation
Dumping is selling exports abroad more cheaply than at home (or below cost), often to capture the foreign market.