Paper 2 · 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 defined as selling goods in foreign markets at prices below those charged in the domestic market (or below cost of production).
ZIMSEC Economics Paper 2, June 2009, Q32
