Question:
As it relates to international trade, dumping is
(1) a form of price discrimination practiced by multinational corporations.
(2) a practice of selling goods in a foreign market at a price lower than it is sold in the home market.
(3) a form of selling more goods than allowed by an import quota.
(4) a country’s strategy to rectify its trade deficit.
(5) a complete ban on imports from a certain country.
Correct Answer:
(2)
Answer Explanation:
Dumping is a predatory pricing strategy in international trade where a country’s businesses export a product at a price that is lower than the price it charges in its own domestic market.
Topic: International Trade Year: 2023
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