Dumping typically occurs because
A) the exporting country raises its prices to increase profits.
B) the exporting country usually is experiencing a recession and has excess production.
C) the importing country is experiencing a recession.
D) the importing country has assessed significant tariffs.

Question

Quizplus · Accepted Answer

Dumping occurs when an exporting country sells its products at a lower price than the production cost, which generally occurs when the exporting country has excess production due to a recession or overproduction. Thus, option B is the correct choice. The other options are not accurate because the exporting country typically lowers its prices in dumping, and the importing country's economic condition may not be a direct cause of dumping.

Dumping Typically Occurs Because