Dumping occurs when a foreign firm
A)pollutes international waters.
B)disposes of waste material internationally.
C)sells inferior output to foreigners.
D)sells its exports at a lower price than its cost of production.
E)sells its output at a lower price in a foreign country than in the country where it produces the good.

Question

Quizplus · Accepted Answer

Dumping is the practice of selling exports at a lower price than its cost of production. This can harm domestic industries in the importing country, as they won't be able to compete with the lower prices.

Dumping Occurs When a Foreign Firm