What Is the Dumping Argument for Protection from International Trade

question 80

Multiple Choice

What is the dumping argument for protection from international trade?

• A)Any firm necessary in wartime must be protected.
• B)Domestic firms must be protected until they gain a comparative advantage.
• C)Foreigners selling products in the economy limit the nation's diversity and stability.
• D)Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.
• E)Domestic jobs must be protected from competition from low-paid foreign workers.

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Definitions:

Manufacturing Firms

Companies engaged in the transformation of raw materials into finished products through the use of labor, tools, machinery, and chemical processing.

Merchandising Firms

Businesses that purchase finished goods for resale, typically operating in the retail or wholesale sectors.

Retail and Wholesale

The selling of goods in small quantities (retail) to consumers and in large quantities (wholesale) to businesses or retailers.

Theory of Constraint (TOC)

A management philosophy that focuses on identifying and removing bottlenecks or constraints that limit the performance of a system.