Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars.Pacifica could be accused of

Question

Quizplus · Accepted Answer

Pacifica would be accused of dumping, which is the practice of selling goods at a lower price than what they are sold for domestically or in other markets, in order to gain a competitive advantage. Dumping can harm domestic producers in the importing country, as they are unable to compete with the artificially low prices of the foreign goods.

Suppose That the Country of Pacifica Sold Its Cars in Atlantica