Paper 1 · June 2009 · Exchange Rates and International Trade
Dumping is the practice of
Aexchanging industrial goods for agricultural products.
Bselling substandard goods to less developed countries.
Cselling goods overseas at prices lower than those in the home market.
Dselling goods overseas in order to minimise the risk of loss resulting from price fluctuations.
Explanation
Dumping is selling abroad below the price charged at home, often below cost, to clear a surplus or to take a foreign market from its established sellers. It is the price gap between the two markets that defines it, not the quality of the goods or the type of trade.
ZIMSEC Economics Paper 1, June 2009, Q32