Dumping is variously defined as selling goods in a foreign market at b

QUESTION

Dumping is variously defined as selling goods in a foreign market at below their costs of production, or as selling goods in a foreign market at below their “fair” market value.

Indicate whether the statement is true or false.

ANSWER

TRUE
Dumping is defined as selling goods in a foreign market at below their costs of production or “fair” market value. Dumping is viewed as a method by which firms unload excess production in foreign markets.