________ occurs when a foreign firm sells its exports at a lower price than its cost of production.
A) Dumping
B) The trickle-down effect
C) Rent seeking
D) Tariff avoidance
E) Nontariff barrier protection

Question

Quizplus · Accepted Answer

Dumping is the practice of a foreign firm selling its exports in a foreign market at a lower price than its cost of production. This is done with the intention of driving out competition and gaining market share. It is considered an unfair trade practice and is subject to anti-dumping regulations.

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