test review part 5 Flashcards
(6 cards)
Selling a product abroad for less than the cost of production, less than the price in the home market, or less than the price to third-party countries
dumping
occurs when producers have lower wage rates, lower social costs such as unemployment taxes and environmental regulations to support the general welfare, poor worker benefits, and poor working conditions, all of which undermine social support systems
social dumping
occurs when an exporter can sell at lower costs due to the country’s lax environmental standards
environmental dumping
A manufacturer may also lower its export price to force the importing nation’s domestic producers out of business, expecting to raise prices once that objective has been accomplished.
predatory dumping