Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals are called _____ laws.
A) collusion
B) antidumping
C) antitrust
D) anticartel

Question

Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals are called _____ laws.
A) collusion 
B) antidumping 
C) antitrust 
D) anticartel

Quizplus · Accepted Answer

The description given in the question matches the definition of antidumping laws, which are meant to prevent unfair competition by foreign companies that sell products in a host country below their cost of production, with the aim of undermining local firms and then raising prices once they have eliminated competition. Collusion refers to an agreement among companies to fix prices or avoid competition, while antitrust laws are designed to promote competition and prevent monopolies. Anticartel laws are similar to antitrust laws, but specifically target price-fixing cartels. None of these terms accurately describe the scenario described in the question.

Laws That Make It Illegal for an Exporter to Sell