If a Foreign Supplier Sells a Good in Another Country

question 11

Multiple Choice

If a foreign supplier sells a good in another country at a cheaper price than it sells the good in its home market, the

• A) foreign supplier will gain a monopoly in the foreign market.
• B) consumers in the receiving country will be harmed by the dumping of the good into its domestic market.
• C) consumers in the receiving country can gain from buying the foreign-produced good if it is cheaper than the cost of producing the good domestically.
• D) usual implications of the law of comparative advantage with trade restrictions do not hold in this case, particularly if the low-cost supplier is subsidized by a foreign government.

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Definitions:

Crackles

Sounds heard in the lungs during inhalation that are indicative of fluid in the air spaces, which can be associated with conditions like pneumonia or heart failure.

Left-Sided Heart Failure

Abnormal condition characterized by impaired functioning of the left ventricle caused by elevated pressures and pulmonary congestion.

Breathing

The physiological process of taking in oxygen from the air and expelling carbon dioxide, essential for life in many organisms.

Mitral Valve

A valve in the heart that lies between the left atrium and left ventricle, which ensures one-way flow of blood from the atrium to the ventricle.