Question

Dumping is a form of price discrimination at

• A. local level
• B. within industry
• C. national level
• D. international level

Answer 1

The Correct Option is D

Step 1 — Understand the meaning of dumping:
In economics and international trade, dumping refers to the practice where a country or a company exports a product at a price lower than the price it normally charges in its own domestic market. This is often done to capture foreign markets or drive out competition.

Step 2 — Relation with price discrimination:
Price discrimination occurs when the same product is sold at different prices in different markets without a cost justification. Dumping is a special case of this practice, where the discrimination happens between domestic and foreign markets.

Step 3 — Why it is international:
Dumping specifically involves selling goods cheaper in international markets compared to the home market. It is not about local or regional price variation, but about exploiting differences between countries.

Step 4 — Effects of dumping:
- It may harm industries in the importing country by undercutting local producers.
- It can lead to anti-dumping measures, tariffs, or trade restrictions by governments.

Final Answer:
The correct option is (D) : international level.