JAMB Economics 1994 Question 49

Question 49

International Trade

A situation in which a commodity is sold abroad below its cost of production in the home country is known as

  1. A.dumping
  2. B.counter trade
  3. C.bilateral trade
  4. D.trade liberalization
Show the answer and explanation

Answer: A (dumping)

Explanation

Selling goods abroad below their cost or home price is dumping.