Wave surfboards are produced in Australia and sold in both Australia and in the United States. The price set for surfboards in the United States is below the price charged for them in Australia. This price discrimination practice is an example of dumping.

Question

Quizplus · Accepted Answer

Dumping occurs when a product is sold at a lower price in a foreign market than in the domestic market. In this case, Wave surfboards are being sold at a lower price in the United States than in Australia, which is an example of price discrimination and dumping.

Wave Surfboards Are Produced in Australia and Sold in Both