When a Firms "Dumps" Some of Its Products in Another

question 179

Multiple Choice

When a firms "dumps" some of its products in another country, it

• A) creates an environmental hazard in the receiving country.
• B) sells its products abroad at a price lower than it costs to produce the goods.
• C) increases the total level of employment in the receiving country.
• D) is specializing according to comparative advantage.

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Definitions:

Loan

A sum of money borrowed that is expected to be paid back with interest.

Asset Securitization

The process of pooling various types of contractual debt such as mortgages, and selling their related cash flows to third party investors as securities.

Investment Choices

The various options available to investors for allocating their funds, including stocks, bonds, real estate, and mutual funds.

Returns

The profit or loss generated on an investment over a specific period.