What is dumping and why would firms engage in it?
What will be an ideal response?
Dumping is when the price charged in a foreign market is either lower than the price charged in the home market or lower than the production cost. Reasons for dumping include price discrimination and predatory pricing.
Economics
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Suppose Chevrolet produced 90,000 Camaros in the United States in 2012 and during 2012 sold 69,000 to U.S. customers and exported 14,000 to foreign buyers. How many Camaros would the BEA count as investment spending by Chevrolet in 2012?
A) 7,000 B) 21,000 C) 76,000 D) 90,000
Economics
Which of the following would not be considered an indirect tax?
a. A value-added tax b. A tax on wheat export c. A tax on imported automobiles d. A tax on the income of a computer manufacturer e. A sales tax on cigarettes
Economics