________ occurs when a foreign firm sells its exports at a lower price than its cost of production.
A) A quota
B) Dumping
C) A tariff
D) A nontariff barrier

Question

Quizplus · Accepted Answer

Dumping occurs when a foreign firm sells its exports at a price lower than the cost of production in order to gain market share and potentially drive out domestic competitors. It is considered a form of unfair trade practice and can be subject to anti-dumping duties by the importing country.

________ Occurs When a Foreign Firm Sells Its Exports at a Lower