When a firms "dumps" some of its output in another country, it

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Quizplus · Accepted Answer

Dumping refers to selling a product in a foreign market at a price lower than the cost of production. This is typically done to gain a competitive advantage over local producers and capture market share. Dumping can harm the domestic producers in the importing country and create an uneven playing field. It can also lead to trade disputes and retaliation by the importing country. Therefore, option E is the best answer.

When a Firms "Dumps" Some of Its Output in Another