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Question : The term "Dumping" refers to 

Option 1: The sale of a sub-standard commodity

Option 2: Sale in a foreign market of a commodity at a price below marginal cost

Option 3: Sale in a foreign market of a commodity just at a marginal cost with too much profit

Option 4: Smuggling of goods without paying any customs duty


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Sale in a foreign market of a commodity at a price below marginal cost


Solution : The correct answer is the sale in a foreign market of a commodity at a price below marginal cost.

The phrase "dumping" refers to the practice of selling products in a foreign market at a price lower than their typical worth. It can be performed to drive out local manufacturers or acquire market share. Dumping has the potential to hurt domestic industry and consumers. When overseas companies sell items below cost, domestic companies may find it challenging to compete with one another. This might result in reduced employment and increased consumer prices.

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