Question

Which best describes the barrier to trade known as dumping? Destroying shipments of imports to force consumers into purchasing domestic goods. Setting tariffs so high that certain classes of goods are not imported at all. Selling exports abroad at a lower price than the domestic price. Overpricing exports to make domestic goods distasteful in foreign markets.

Answer 1

Answer: Selling exports abroad at a lower price than the domestic price.

Explanation:

Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.

This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.

An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.