If a foreign producer sells a good in a country at a lower price than in its home market, this is called A. a tariff offset. B. a countervailing duty. C. dumping. D. a reverse tariff.

Question

Jeramiah Mills

Business

2 May, 00:53

If a foreign producer sells a good in a country at a lower price than in its home market, this is called A. a tariff offset. B. a countervailing duty. C. dumping. D. a reverse tariff.

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Answers (1)

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Arroyo · Answer 1

The correct option is (C)

Explanation:

Dumping is often a technique used by exporters to enter a foreign market. It is a form of price discrimination whereby exporter or foreign producer imports or sells goods in a the foreign market at a price lower than what the consumers pay for the same commodity in the home market. It is considered as one of the best ways to capture foreign market.

Therefore, Dumping is the correct option.