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WAEC Economics 2017 Question 43

Question 43

International Trade

Dumping in international trade occurs when a foreign firm sells

  1. A.above its cost of production at home and abroad.
  2. B.below its cost of production at home and abroad.
  3. C.more goods to a country than the country has need of.
  4. D.below its cost of production in a foreign market.
Show the answer and explanation

Answer: D (below its cost of production in a foreign market.)

Explanation

Dumping is selling in a foreign market below cost (or below the home price).