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- Non-Tariff Trade Barrierseconomics-mcqs › non-tariff-trade-barriers
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Why is dumping occurring in the case of ABC Co’s computers? The demand curve in Japan is _______ because there are _______ alternatives from foreign countries.
Multiple choice question for Non-Tariff Trade Barriers. Select an option, then review the explanation below.
Explanation
Dumping happens because the demand for ABC Co’s computers in Japan is more elastic, which arises from the presence of many substitute products imported from other countries. This elasticity means consumers are more sensitive to price changes, encouraging dumping to remain competitive.
More Non-Tariff Trade Barriers MCQs
Practice related questions from the same subject.
- 1.Which U.S. company would be most affected by Brazil selling steel at below-market prices in the American market?
- 2.Which type of quota limits the quantity of goods that can be imported annually without restricting the source country or the authorized importers?
- 3.Based on the cost-based definition, dumping happens when a company exports a product at a price lower than which of the following?
- 4.Which type of dumping is associated with the highest possible net welfare loss for the importing country?
- 5.Which policy restricts outsourcing by mandating that a certain portion of a product's value be manufactured within the country to qualify for sale in the domestic market?