A situation in which a commodity is sold abroad below its cost of production in the home country is known as?

  • A dumping
  • B counter trade
  • C bilateral trade
  • D trade liberalization
jamb 2020economics

The correct answer is A. dumping

Dumping is a situation in which a commodity is sold abroad below its cost of production in the home country.

It occurs 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.

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