Dumping Occurs When ________

question 49

Multiple Choice

Dumping occurs when ________.

• A) a company entering a foreign market charges either less than its costs or less than it charges at home
• B) a company entering a foreign market charges more than the price in its home market
• C) a company entering a foreign market charges prices that are lower than those charged by its competitors in this market
• D) a company sets its price equal to its average cost of production
• E) a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country

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Definitions:

Maker

A person who has promised to pay a set sum to the holder of a promissory note or certificate of deposit.

Drawer

The person who writes or issues a bill of exchange, cheque, or draft, instructing a drawee to pay a specified sum to a payee.

Transfer Warranties

Legal assurances provided by a seller to a buyer regarding the condition and legal status of property or goods being sold.

Presentment Warranties

Guarantees made by the presenter of an instrument (e.g., a check) regarding their authority and the validity of the instrument in a financial transaction.