Multiple choice

Dumping in the context of international trade refers to

  1. exporting goods at prices below the cost of production

  2. exporting goods of inferior quality

  3. exporting goods only to re-import them at cheaper rates

  4. exporting goods without paying appropriate taxes in the receiving country

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A Correct answer
Explanation

Dumping occurs when a country exports a product at a price lower than its cost of production or lower than the price in its domestic market, often to gain market share or eliminate competition.