Dumping is considered a practice that seriously harms domestic producers because
A) the quality of the dumped good is superior to that of the importing country.
B) it allows the exporting country to use poor quality materials.
C) it establishes a price that cannot be met by domestic producers.
D) it discriminates between wealthy and poor countries.

Question

Quizplus · Accepted Answer

Dumping establishes a price that is lower than the cost of production, making it difficult for domestic producers to compete with the imported goods. This leads to lower sales and ultimately harms the domestic producers. The quality and materials used in the dumped good are not necessarily a factor in this harm. Additionally, while dumping can be seen as discriminatory, this is not the primary reason why it harms domestic producers.

Dumping Is Considered a Practice That Seriously Harms Domestic Producers