The practice of selling goods in foreign markets at a price lower than the cost...
COMMERCE
WAEC 2015
The practice of selling goods in foreign markets at a price lower than the cost price is?
- A. fair trading
- B. under invoicing
- C. hedging
- D. dumping
Correct Answer: D. dumping
Explanation
Dumping is a term used in the context of international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. Because dumping typically involves substantial export volumes of a product, it often endangers the financial viability of the product's manufacturers or producers in the importing nation
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