Question

Dumping is a form of price discrimination at

• A. local level
• B. within industry
• C. national level
• D. international level

Hint:

Dumping always involves exporting goods cheaper than they are sold at home.

Answer 1

The Correct Option is D

The key clue in dumping is that it always involves selling abroad cheaper than at home.

1. Local level: dumping isn't about price differences between two towns or regions within the same country.
2. Within industry: this would mean different firms in the same industry pricing differently, not what dumping describes.
3. National level: dumping isn't confined to pricing choices inside one country's borders either.
4. International level: dumping specifically means a country's exporters sell a good abroad below its home-market price (or below cost), which is a cross-border practice that invites anti-dumping duties from the importing country.

Since the price gap is between the domestic market and an export market, dumping is an international-level form of price discrimination, so option D is correct.