________ occurs when a foreign firm sells its exports at a lower price than its cost of production.
A)Comparative advantage
B)Learning-by-doing
C)A tariff
D)An infant industry
E)Dumping

Question

Quizplus · Accepted Answer

Dumping occurs when a country sells its exports at a price lower than its cost of production in the foreign market, gaining an unfair competitive advantage over the local producers. This practice is often used as a strategy to capture new markets or to drive the domestic players out of the market. It is considered an unfair trade practice and is regulated by international trade laws.

________ Occurs When a Foreign Firm Sells Its Exports at a Lower