Dumping can be:

Question

Dumping can be:

Quizplus · Accepted Answer

Here are the options explained:
a. Predatory: Predatory dumping occurs when a company temporarily reduces prices to drive competitors out of the market. Once the competition has been eliminated, the company may raise prices to recoup losses.
b. Cost-based: Cost-based dumping happens when the export price of a product is lower than the cost of production. This might be done to enter a new market or to clear out inventory that is not selling well domestically.
c. Price-based: Price-based dumping is when the export price is lower than the domestic price. This can be a strategy to maximize a company's presence in different markets by adjusting prices according to local market conditions and competition.
d. All of the above: Dumping can indeed be predatory, cost-based, or price-based, as all these strategies involve setting export prices below certain benchmarks (whether it's the domestic price, the cost of production, or with the intent to harm competition).
e. None of the above: This option is incorrect because dumping can involve any of the practices listed above.
The correct answer is:
d. all of the above

Dumping Can Be