Which criterion must be met to identify if an imported product is being dumped on the home country?
I. The foreign firm sells the product at a lower price in the home market.
II. The foreign firm sells the product below average cost in the home market.
III. The foreign firm raises the price in the home country.
a. I
b. II
c. I or II
d. I, II, and III
Ans: c. I or II
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A business's use of a bank located outside of the home country is called
A) Swiss banking. B) offshore banking. C) international banking. D) domestic banking. E) international swapping.
Managers' pursuit of which of the following objectives would NOT lead to a principal-agent problem in a corporation?
A) The corporation's growth B) Increased market share for the corporation C) The maximum possible profit for the corporation D) A great "golden parachute" or retirement package E) Increased current salary and fringe benefits
If Bob has one piece of gum in his mouth, he gains a utility of 12. If he adds a second piece to the first, it yields a marginal utility of 6; adding a third will bring marginal utility of 1. Adding a fourth piece will make Bob choke, yielding a marginal utility of 4. We can say:
A. Bob's total utility from chewing four pieces of gum would be 23. B. Bob's total utility will decrease if he chews the fourth piece of gum. C. Bob's total utility will be maximized if he eats two pieces. D. Bob's total utility decreases after the first piece of gum.
Though the countries can benefit by completely specializing in the production of the good in which they have comparative advantage, in real world however, they do not completely specialize
a. True b. False Indicate whether the statement is true or false