Dumping refers to
A) illegally disposing of unusable or damaged goods to avoid paying removal fees and/or taxes.
B) when a firm sells damaged or unsalable goods below their original production cost.
C) when a firm sells quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for seasonal goods.
D) when a firm sells quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for newer or more expensive models.
E) when a firm sells a product in a foreign country below its domestic price or below its actual cost.

Question

Quizplus · Accepted Answer

Dumping refers to the practice of a firm selling a product in a foreign country at a lower price than it sells for in its domestic market, or even below its production cost. This is often done to capture market share and potentially drive competitors out of business. It can also be seen as a way for companies to recoup some of their production costs or to get rid of excess inventory. However, it is often considered an unfair trade practice and can lead to retaliatory tariffs or other trade barriers.

Dumping Refers to