International dumping may involve

 Options:

a. selling goods to foreigners at a price below that charged domestic consumers b. selling goods to foreigners at a price below the cost of production c. antidumping duties being levied on the imported, dumped goods d. all of the above

The Correct Answer Is:

d. all of the above

Correct Answer Explanation: d. all of the above 

The correct answer is indeed option “d. all of the above” because international dumping can involve various practices and consequences that encompass all the statements provided in the options.

International dumping is a trade practice where a company or country exports goods to foreign markets at prices below the domestic price or below the cost of production. Let’s delve into the details of why this answer is correct and then discuss why the other options are not accurate.

a. Selling goods to foreigners at a price below that charged to domestic consumers:

International dumping often involves selling goods to foreign consumers at prices lower than what domestic consumers are charged. This is done to gain a competitive advantage in foreign markets, capture market share, and potentially drive local competitors out of business.

By offering lower prices abroad, companies can expand their global reach and increase sales. However, this practice may harm domestic industries and lead to job losses or market distortions.

b. Selling goods to foreigners at a price below the cost of production:

Another aspect of international dumping is selling goods at prices below the cost of production. In this scenario, companies or countries are willing to operate at a loss in foreign markets to gain a foothold or dominance.

This predatory pricing strategy can be anti-competitive and harm local industries in the importing country. It is essential to recognize that selling below the cost of production is not sustainable in the long run and is often employed to eliminate competition.

c. Antidumping duties being levied on the imported, dumped goods:

To counteract the negative effects of international dumping, many countries impose antidumping duties on the imported, dumped goods. These duties are intended to offset the price advantage created by the dumping and protect local industries from unfair competition.

They aim to level the playing field and prevent damage to domestic businesses. Antidumping duties are a common response to dumping practices and are consistent with international trade regulations.

Now, let’s discuss why the other options are not correct:

a. Selling goods to foreigners at a price below that charged domestic consumers:

This statement is indeed correct, and it is one of the aspects of international dumping. However, international dumping can involve more than just selling goods at a lower price to foreign consumers. It may also encompass selling goods below the cost of production, as mentioned in option “b.”

b. Selling goods to foreigners at a price below the cost of production:

This statement is also accurate and reflects one of the practices associated with international dumping. Selling below the cost of production is a predatory pricing strategy used to gain a competitive advantage in foreign markets.

However, international dumping may also involve selling goods at prices below domestic prices, as mentioned in option “a.”

c. Antidumping duties being levied on the imported, dumped goods:

This statement is correct as well. When international dumping is identified, importing countries often impose antidumping duties to counteract the negative impact on domestic industries. These duties are a means of ensuring fair competition and preventing harm to local businesses.

However, this option alone does not encompass all aspects of international dumping, as it does not address the pricing strategy itself.

In summary, international dumping is a complex trade practice that involves selling goods to foreigners at prices below domestic prices and/or the cost of production, and it often leads to the imposition of antidumping duties.

All of the provided options are, in fact, accurate aspects of international dumping, which is why the correct answer is “d. all of the above.”

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