Dumping involves

selling at a price in another market which is lower than the price or cost in home market

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price discrimination between the two markets

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surplus production at lower cast

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none of the above

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Solution

The correct option is B selling at a price in another market which is lower than the price or cost in home market
Dumping occurs when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. The biggest advantage of dumping is the ability to flood a market with product prices that are often considered unfair. Example of Alleged Import Dumping - Steel and Solar Panels from China. China's steel industry is experiencing significant excess capacity and China has being accused of dumping its steel products on the European Union, selling them for less than they are worth. That makes it harder for EU steel producers to compete.

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Similar questions

Consider the following statements:

1. Sporadic dumping is selling of goods at a low price in the foreign market to get rid of the inventory stocks.

2. Predatory dumping is selling a product at a lower price in foreign markets due to differences in elasticity of demand at home and in the foreign market.

3. Persistent dumping is destroying of competitors even at a loss initially and then, after eliminating of competitors, selling product at a high price.

Which of the above statements are correct?

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Q. Valuation of stocks is done by a business firm at cost price or market price, whichever is lower basis, under

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