Question

Central American farmers sell their produce to American customers at a price that is above the price charged by American companies to increase the price of the American products, this is an example of dumping.
True/False

Answer 1

Answer:

False

Explanation:

Dumping is a common term in the context of international trade. It occurs when international trade involving export of goods from a country are characterized by goods cheaper than goods in the importing country. This is done mainly to drive out competition in the importing country and create some kind of monopoly for the exporting country. Typically it involves substantial export volumes of a product, and often endangers local businesses in the importing nation.