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
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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