economics medium Fill in the Blank

The economic practice of exporting a product to a foreign market at a price that is lower than the price charged in its home market, or lower than its cost of production, is known as ___.

  1. dumping
  2. John Maynard Keynes
  3. dividend (or window of opportunity)
  4. substitutes

Answer: dumping

Dumping is considered a predatory and unfair trade practice under WTO rules. It is often used by foreign producers to capture market share or drive domestic competitors out of business. To counter this, importing nations can impose 'Anti-Dumping Duties' to level the playing field and protect their domestic industries from material injury.

Topic International Economics - Trade
Exam Relevance UPSC Prelims, SSC CGL, Banking
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