Which of the following statements best describes dumping?
A) Dumping is legal provided that it is government subsidized.
B) Most industrialized nations have passed laws to make dumping illegal.
C) Canada has not been a victim of dumping.
D) Dumping is a form of export quota.

Question

Quizplus · Accepted Answer

Dumping refers to the practice of exporting goods at a price lower than their domestic price, often with the aim of driving out competition in the importing country. Many industrialized countries, including the United States and the European Union, have anti-dumping laws to prevent this practice. Choice A is incorrect because government subsidies may contribute to dumping, but they do not make it legal. Choice C is incorrect because Canada has been a victim of dumping in the past. Choice D is incorrect because dumping is not a form of export quota, which involves limiting the amount of goods that can be exported.

Which of the Following Statements Best Describes Dumping