Country X subsidizes industry A. A worldwide recession has hit and Country X has decided to export Good A worldwide, selling the product for less than it costs to produce it. This is
A) the infant industry argument.
B) comparative advantage argument.
C) dumping.
D) a regional trade bloc.

Question

Quizplus · Accepted Answer

The scenario describes the act of dumping, which is the practice of exporting goods at a price below their production cost. This is considered an unfair trade practice and is prohibited by international trade laws.

Country X Subsidizes Industry A