Dumping in the World Markets Is Most Likely to Increase

question 29

Multiple Choice

Dumping in the world markets is most likely to increase when

• A) domestic production capacity is low.
• B) demand in the home country is low.
• C) demand in the foreign country is low.
• D) foreign production capacity is high.
• E) cost of production is low.

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Definitions:

Subsidy

A financial contribution granted by the government or a public body to support businesses or consumers, making goods or services more affordable.

Manure

Organic matter, mainly derived from animal feces, used as fertilizer in agriculture.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Bananas

A tropical fruit that is elongated and crescent-shaped when ripe, commonly used in economics examples to discuss trade or market dynamics.