The president of the Auto Parts of America Corporation recently testified before Congress, urging them to limit the flow of imported automobile parts into the United States. She contended that these imports were priced lower than the foreign producers were charging in their own countries. She believes these foreign producers are: A) dumping. B) exercising trade deficits. C) promoting free trade. D) exhibiting ethnocentricity

Question

Frank Delgado

Business

4 November, 22:54

The president of the Auto Parts of America Corporation recently testified before Congress, urging them to limit the flow of imported automobile parts into the United States. She contended that these imports were priced lower than the foreign producers were charging in their own countries. She believes these foreign producers are: A) dumping. B) exercising trade deficits. C) promoting free trade. D) exhibiting ethnocentricity

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Answers (1)

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Schroeder · Answer 1

The correct answer is A) dumping.

Explanation:

Sale at a loss, dump or unfair competition refers to the practice of selling below the normal price or at prices below cost in order to eliminate competition and take over the market. The word is generally used only in the context of international trade laws where dumping is defined as the practice where a company sets a lower price for exported goods than for the company's production costs from the country to where these goods are imported, taking the local company out of competition.