Dumping occurs when a foreign firm
A) pollutes international waters.
B) disposes of waste materials in other countries.
C) sells inferior output to foreigners.
D) sells its exports at a lower price than its cost of production.

Question

Quizplus · Accepted Answer

Dumping refers to the practice where a foreign firm sells its exports at a price lower than its cost of production, often to gain market share or eliminate competition in the importing country.

Dumping Occurs When a Foreign Firm