PRC-3 · Chapter 20 · Question 13 of 30
To protect domestic farmers, a foreign government sells its massive surplus of heavily subsidized wheat into the global market at a price significantly below the actual cost of production. This unfair trade practice is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Dumping
Explanation
Dumping occurs when a country exports goods at a price lower than their domestic price or actual cost of production, often to destroy competitors in the importing nation.
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