Economics JAMB

Dumping in international trade means selling a goods at a?

A. higher price at home than abroad
B. lower price at home than abroad
C. price that equates marginal cost with marginal revenue
D. price above marginal cost abroad

Correct Answer:

Option A – higher price at home than abroad

Explanation

Dumping is an international price discrimination in which an exporter firm sells a portion of its output in a foreign market at a very low price and the remaining output at a high price in the home market

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