Which of the following statements is a characteristic of dumping?
A)It refers to the active ownership of a foreign company or of overseas manufacturing or marketing facilities.
B)It refers to the sale of an exported product at a price lower than that charged for the same or a like product in the ''home'' market of the exporter.
C)It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
D)It refers to a system in which prices of different currencies move up and down based on the demand for and the supply of each currency.

Question

Quizplus · Accepted Answer

Dumping refers to the practice of selling a product at a lower price in a foreign market than the price charged for the same product in the domestic market. This is done in order to gain a competitive advantage and capture market share in the foreign market. It is often considered to be a form of unfair trade practice and can lead to anti-dumping actions by governments. A is incorrect as it refers to foreign direct investment (FDI), not dumping. C refers to barter trade, and D refers to currency exchange rates, which are not related to dumping.

Which of the Following Statements Is a Characteristic of Dumping