QUESTION IMAGE
Question
the country of calibria has many factories producing plastic toys. a large volume of these goods is sold in neighboring countries at prices below those charged in the calibrian market. the action of the factories in calibria is known as ______. options: a tariff, dumping, a quota, an embargo, i dont know yet
Dumping in international trade is defined as exporting goods at a price lower than the domestic price or the cost of production. Here, Calibria's factories sell plastic toys in neighboring countries at prices below those in Calibria's market, which matches the definition of dumping. A tariff is a tax on imports, a quota is a limit on imports, and an embargo is a ban on trade, none of which fit this scenario.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
B. dumping