Which of the following is true of predatory dumping?

Question

Quizplus · Accepted Answer

Predatory dumping involves exporting goods at prices lower than the cost of production, in order to drive out established competitors in the foreign market. Therefore, option B is correct. Option A is incorrect because predatory dumping is an unfair trade practice and not a legitimate way to encourage domestic production. Option C is incorrect because while there have been cases of predatory dumping, it is not a widespread phenomenon. Option D is also incorrect because the goal of predatory dumping is not to lower prices once the competition is eliminated, but rather to gain control of the market. Option E is irrelevant to the definition of predatory dumping.

Which of the Following Is True of Predatory Dumping