Asked by Judith Parsons on May 01, 2024
Verified
Whenever a foreign producer is selling a product like steel at a lower price than domestic producers, then dumping is being practiced and must be corrected.
Dumping
The sale of a product in a foreign country at prices either below cost or below the prices commonly charged at home.
Domestic Producers
Enterprises and individuals within a country that produce goods and services.
- Gain an understanding of the core tenets of international trade and their economic influence on countries.
- Investigate the influence of tariffs, quotas, and various trade obstructions on domestic and international market dynamics.
Verified Answer
EL
Emily LopezMay 06, 2024
Final Answer :
False
Explanation :
Dumping refers specifically to the act of exporting a product at a price lower than its normal value, particularly the price in the domestic market of the exporting country. It's not merely about selling at lower prices than domestic producers but involves a specific comparison to home market prices or production costs. Anti-dumping measures or corrections are applied only if this practice causes or threatens to cause material injury to a domestic industry.
Learning Objectives
- Gain an understanding of the core tenets of international trade and their economic influence on countries.
- Investigate the influence of tariffs, quotas, and various trade obstructions on domestic and international market dynamics.
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