When a Foreign Supplier Sells a Good Below the Price

question 136

Multiple Choice

When a foreign supplier sells a good below the price it charges in its home country,this is called

• A) undercutting.
• B) releasing.
• C) expelling.
• D) dumping.
• E) wholesaling.

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Definitions:

Potato Chips

Thin slices of potato that are deep fried or baked until crispy, often served as a snack.

Price of Cola

The amount of money required to purchase a unit or specified quantity of cola.

System of Rationing

A method for distributing scarce goods and services using criteria other than price, often implemented during shortages to ensure equitable distribution.

Free Market Price

The price of goods or services determined by supply and demand in a free market, without government intervention.