Which of the following best indicates the motive for foreign firms to engage in dumping?

Question

Quizplus · Accepted Answer

Dumping is the practice of selling goods in foreign markets at prices lower than those charged in the domestic market or lower than the cost of production. Foreign firms engage in dumping to unload excess production and maintain their market share. By doing so, they can weaken their competitors in foreign markets and improve their market position. Therefore, A is the correct choice as it reflects the primary motive for foreign firms to engage in dumping.

B, C, D, and E are incorrect options because reducing labor costs, providing a wider range of products, meeting export requirements, and obtaining subsidies are not necessarily the primary motives for foreign firms to engage in dumping. While they may be contributing factors for some firms, they are not the main reason for engaging in dumping practices.

Which of the Following Best Indicates the Motive for Foreign