When one country "dumps" some of its products in another country, it
A) increases the aggregate level of employment in the importing country, thereby depressing that nation's market wages.
B) also exports new technology to the importing nation and thereby indirectly boosts the importing nation's real GDP.
C) sells its products abroad at a price lower than the price in the home market or lower than the cost of production.
D) also exports pollution-causing technologies and thereby creates environmental hazards in the receiving country.

Question

Quizplus · Accepted Answer

Dumping refers to a situation where a country exports its products to another country at a price lower than the price in the home market or lower than the cost of production. This creates an unfair advantage for the exporting country's products over the domestically produced goods of the receiving country. It can cause harm to the domestic producers in the receiving country and may also disrupt the local market.

When One Country "Dumps" Some of Its Products in Another