Suppose a manufacturer sells goods abroad for a lower price than the price for which the goods are sold in the manufacturer's own country.Which of the following describes the actions of this firm?

Question

Quizplus · Accepted Answer

The firm is engaged in dumping, which is the practice of selling goods in a foreign market at a price lower than their domestic market price. Dumping is generally considered an unfair trade practice and may be subject to legal action by the affected country. Embargoes and quotas are trade restrictions imposed by governments on imports, whereas improved terms of trade refer to the ratio between a country's export prices and import prices.

Suppose a Manufacturer Sells Goods Abroad for a Lower Price