WAEC SSCE - Economics - 1991 (Objective)

Question 1 Report

Dumping in Economics means the selling of goods in a foreign market

ata a price below that received in the home market

at a price above that received in the home market

at a price equal to the cost price in the home market

in order to encourage indigenious producers

at a price equal to the selling price in the home market

Answer Details

Dumping in economics refers to the practice of selling goods in a foreign market at a price below that received in the home market. This is done in order to gain a competitive advantage in the foreign market and increase market share. The purpose of dumping is to drive competitors out of the market and establish a monopoly. Dumping is generally considered an unfair trade practice, as it can cause harm to domestic producers in the foreign market. It can also lead to a race to the bottom in terms of pricing, which can be detrimental to all producers involved.






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