Q4.Dumping refers to: A. Reducing tariffs B. Sale of goods abroad at a lower price, below their cost and price in their home market C. Buying goods at low prices abroad and selling at higher prices locally D. Expensive goods selling for low prices Answer: B
When a government agrees to reduce its import tariff on a particular product, it alters the competitive relationship between imported and domestic units of the product in favour of imported units, and it thereby provides greater market access to foreign producers.
