Asked by Tessa Eddington on Jun 11, 2024
Verified
Agro Corp.,based in the country of Arahonia,is a company that produces agricultural products.The domestic market of Arahonia is not sufficient to support Agro Corp.'s large-scale level of production because Arahonia is a small but highly industrialized country.Thus,Agro Corp.decides to sell its products to the agriculture-based country of Petinberg at less than their production cost.This process is termed as _____.
A) dumping
B) offshoring
C) outsourcing
D) monopolizing
E) franchising
Agricultural Products
Goods derived from farming and agriculture, including crops and livestock.
- Understand the implications of economic policies and practices on international business, such as dumping and tariffs.
Verified Answer
AS
Ankur SharmaJun 15, 2024
Final Answer :
A
Explanation :
Dumping refers to the practice of selling a product in a foreign market at a price below its production cost, often to gain market share or to unload surplus production. Agro Corp. is doing exactly this by selling its products in Petinberg at less than their production cost.
Learning Objectives
- Understand the implications of economic policies and practices on international business, such as dumping and tariffs.