When a firms "dumps" some of its products in another country, it
A) sells its goods abroad at a price lower than it costs to produce the goods.
B) is specialising according to comparative advantage.
C) increases the total level of employment in the receiving country.
D) creates an environmental hazard in the receiving country.

Question

Quizplus · Accepted Answer

Dumping involves selling goods in a foreign market at a price lower than the cost of production, often to gain market share or eliminate surplus stock. This practice can harm domestic industries in the importing country.

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