Question

Dumping refers to a situation when a company: Question 1 options: a) exports to a foreign...

Dumping refers to a situation when a company:

Question 1 options:

a)

exports to a foreign market at a price that is either higher than the domestic prices in that country or higher than the cost of production.

b)

imports to the domestic market at a price that is either higher than the domestic prices in that country or higher than the cost of production.

c)

exports to a foreign market at a price that is either lower than the domestic prices in that country or less than the cost of production.

d)

manufactures goods and sells them in the same country at a price which is lower than the prices in that market.

e)

exports to a foreign market at a price that is either the same or higher than the country from where the goods are being exported.

Homework Answers

Answer #1

Dumping refers to a situation when a company exports a good into a particular country at a lower price than what the price already prevailing in that market. For example, a ABC company based in country 1 exports mobile phones to country 2 at a price of $20 which is lower than the domestic price in that market. This will cause the market share of ABC company to increase in the market.

Dumping refers to a situation when a company:

c)

exports to a foreign market at a price that is either lower than the domestic prices in that country or less than the cost of production.
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