The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical.
FIGURE 34- 3
-Which of the following actions (all of which affect international trade)would be taken by a private firm as opposed to a national government?

Question

The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical.
  FIGURE 34- 3
-Which of the following actions (all of which affect international trade)would be taken by a private firm as opposed to a national government?

Quizplus · Accepted Answer

Dumping refers to a situation where a foreign producer exports goods to another country at a price lower than its domestic market. This may lead to unfair competition with local producers in the importing country. However, it is not a policy action that can be taken by a national government but rather a business decision made by a private firm.

The Diagram Below Shows the Domestic Demand and Supply Curves