An American firm recently criticized a Chinese steel producer for charging a lower price for its steel in the United States than it charges in China. If proven to be true, the Chinese firm has engaged in .

Question

Quizplus · Accepted Answer

If a Chinese firm is charging a lower price for its steel in the United States than it charges in China, it is engaging in 'dumping', which is the practice of exporting goods at a price lower than the selling price of a similar product in the market of the exporting country. This can harm domestic producers in the importing country and distort global markets.

An American Firm Recently Criticized a Chinese Steel Producer for Charging