The Temporary Sale of a Commodity at Below Cost or at a Lower

question 1

Multiple Choice

The temporary sale of a commodity at below cost or at a lower price abroad in order to drive foreign producers out of business is called:

• A)predatory dumping
• B)sporadic dumping
• C)continuous dumping
• D)voluntary export restraints

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Definitions:

Import

Products or services that are transported into a country from another with the intent to sell them.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade and resource allocation.

Opportunity Cost

The value of the best alternative foregone as a result of making a particular choice or decision.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost compared to its competitors.