A situation in which a commodity is sold abroad below its cost of production in...

ECONOMICSJAMB 2020

A situation in which a commodity is sold abroad below its cost of production in the home country is known as?

  • A. dumping
  • B. counter trade
  • C. bilateral trade
  • D. trade liberalization

Correct Answer: A. dumping

Explanation

Dumping is a term used to describe a market situation where an exporter firm sells its product in an international market for a price lesser than its cost of production in the home country.

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