Question

Dumping is

• A. selling of goods abroad at a price well below the production cost at the home market price
• B. the process by which the supply of a manufacture's product remains low in the domestic market, which batches him better price
• C. prohibited by regulations of GATT
• D. All of the above

Hint:

Dumping is an unfair trade practice that can lead to trade disputes and is addressed in international trade agreements.

Answer 1

The Correct Option is A

Step 1: Understanding the term "dumping."
Dumping is the practice of selling goods in a foreign market at prices lower than in the domestic market, often below the production cost. This is done to gain a competitive edge.
Step 2: Analyzing the options.
(A) selling of goods abroad at a price well below the production cost at the home market price: Correct — This defines dumping accurately.
(B) the process by which the supply of a manufacture's product remains low in the domestic market, which batches him better price: This is not a correct definition of dumping.
(C) prohibited by regulations of GATT: While dumping can be challenged under GATT regulations, the primary definition of dumping is as given in (A).
(D) All of the above: This is incorrect because option (B) is not a correct definition of dumping.
Step 3: Conclusion.
The correct answer is (A) selling of goods abroad at a price well below the production cost at the home market price, as this correctly defines dumping.