Dumping Refers to a Situation Where

question 47

Multiple Choice

Dumping refers to a situation where:

• A)governments limit the convertibility of one currency (usually its own)into others, usually in an effort to limit imports.
• B)governments provide financing to domestic companies to promote exports.
• C)companies sell products below market price often in order to win market share and weaken a competitor.
• D)countries designate certain geographic areas as free trade zones.
• E)countries continue to require that a certain percentage of a product or an item be manufactured or "assembled" locally.

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Definitions:

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.