A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
Answer Details
A situation in which a commodity is sold abroad below its cost of production in the home country is known as "dumping." This occurs when a company exports a product to another country and sells it for less than it would cost to produce the same product in the home country. Dumping is considered to be an unfair trade practice, as it can harm domestic producers in the importing country by undercutting their prices and potentially putting them out of business. To address the issue of dumping, many countries have implemented anti-dumping policies and measures that aim to protect domestic producers from the negative effects of this practice.