As It Relates to International Trade, Dumping

question 18

Multiple Choice

As it relates to international trade, dumping

• A)is a form of price discrimination illegal under U.S. antitrust laws.
• B)is the practice of selling goods in a foreign market at less than cost.
• C)constitutes a general case for permanent tariffs.
• D)is defined as selling more goods than allowed by an import quota.

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Definitions:

Valuation Allowance

A reserve created to account for future tax benefits that may not be realized, reducing the reported value of deferred tax assets to an amount that is more likely to be realized.

Deferred Tax Asset

This asset reflects the future tax benefits that a company is entitled to, due to deductible temporary differences and carryforwards.

Operating Loss

A loss that occurs when a company's operating expenses exceed its revenues.

Carryback Provision

A tax provision allowing companies to apply a current year's net operating losses to past years' profits for potential tax refunds, offsetting taxable income in profitable years.