Asked by Brycen Cluster on Jun 15, 2024
Verified
If a manufacturer sells goods abroad for a lesser price than they sell for at home,it implies that _____.
A) an embargo has been established
B) a quota has been imposed
C) the manufacturer is engaged in dumping
D) there has been an improvement in the terms of trade
E) tariffs have been reduced
Dumping
In international trade, it's the practice of selling a product in a foreign market at a price that is below the cost to produce it or below the price in the home market.
Embargo
A government order that restricts commerce with a specified country or the exchange of specific goods.
Tariffs
Taxes imposed by a government on imported goods to increase their price and protect domestic industries from foreign competition.
- Discern the strategies and impacts related to dumping and alternative non-equitable trade practices.
Verified Answer
LA
Lindsey AlfredJun 19, 2024
Final Answer :
C
Explanation :
Selling goods abroad for a lesser price than they sell for at home is known as dumping. It can be a pricing strategy aimed at gaining a foothold in a new market or driving out competition. It is usually considered illegal by trade laws and can lead to trade sanctions or penalties.
Learning Objectives
- Discern the strategies and impacts related to dumping and alternative non-equitable trade practices.