A practice of selling a commodity in a foreign market at a price lower than the domestic price; and even at equal to the cost of production to capture foreign market is known as :
Dumping
When a firm sells its product abroad at a price below the price charged in its home market, or even at or below its cost of production, in order to capture the foreign market, the practice is called dumping.
Dumping is a form of international price discrimination, and importing countries counter it through anti-dumping duties permitted under the WTO Anti-Dumping Agreement.
Gouging means charging an excessively high price, forging means counterfeiting documents or goods, and forfeiting (forfaiting) is a method of financing exports by selling receivables without recourse; none of these describes below-cost selling abroad.
Hence, the answer is Dumping.
Similar Questions
Duty levied on the value of goods imported is referred to as
Which of the following expressions amount to the import restriction measures ?
(i) Currency control
(ii) Establishment of EPZs
(iii) Tariff cuts
(iv) Imposition of tariffs
(v) Imposition of non-tariff barriers
Codes :
In international trade which of the following is a non-tariff trade barrier ?
Important Questions from Government intervention in international trade
Which one of the following non-tariff barriers is to be adequately addressed by India while signing FTA with any country that has potential to import fruits, vegetables and other plant-based products from India?
Quotas which are the quantitative restrictions on exports/imports intended at protecting local industries and conserving foreign exchange, include which of the following?
(A) Single stage quota
(B) Absolute quota
(C) Tariff quotas
(D) Value added quotas
(E) Voluntary quotas
Choose the correct answer from the options given below:
Duty levied on the value of goods imported is referred to as
Which of the following expressions amount to the import restriction measures ?
(i) Currency control
(ii) Establishment of EPZs
(iii) Tariff cuts
(iv) Imposition of tariffs
(v) Imposition of non-tariff barriers
Codes :
In international trade which of the following is a non-tariff trade barrier ?
