At the Sydney Retail Fruit Market a case of Egyptian oranges is selling for $10. Frank Battistel of the Riverina Citrus Growers cannot see how such a price is possible. Frank points out that if you take approximately 30% off the retail $10 the shop makes, then deduct the percentage the agent makes, then the percentage the importer makes-add shipping freight and other import costs-the only possible conclusion is that the imported cost price must be less than $1 per case. Frank Battistel is concerned about which international trade practice?

Question

Quizplus · Accepted Answer

Frank Battistel's concerns about the imported cost price being less than $1 per case indicate that the importer may be engaging in dumping - the practice of selling goods in a foreign market at a price lower than the production cost or the price in the domestic market.

At the Sydney Retail Fruit Market a Case of Egyptian