When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production,which of the following is being used?
A) Save domestic jobs argument
B) National security argument
C) Dumping argument
D) Infant-industry argument
E) Diversity and stability argument

Question

Quizplus · Accepted Answer

This is known as the dumping argument, in which foreign producers are accused of selling their products at a price lower than the cost of production in order to gain market share and undercut domestic producers. A tariff may be seen as a way to address this unfair competition.

When a Tariff Supporter Argues That Foreign Producers Are Selling