The country of Kappa sells pizza for $1.00 each within its borders. But Kappa exports pizzas at a price of $0.30. This is an example of a(n)________.

Question

Quizplus · Accepted Answer

Dumping occurs when a company sells a product in a foreign market at a lower price than it sells the same product in its domestic market. In this scenario, Kappa is selling pizzas at a much lower price when exporting them, which may harm local pizza vendors in the foreign market and give Kappa an unfair advantage. Therefore, this is an example of dumping.

The Country of Kappa Sells Pizza for $1