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

Concept:
Price discrimination means selling the same product at different prices to different buyers, and dumping is a specific, well-known form of this practice in international trade.

Explanation:
Dumping occurs when a firm or a country exports a product to a foreign market at a price lower than what it charges in its own domestic market, or even below its cost of production, often to capture market share or eliminate competition abroad. Because this price gap exists between the domestic market and a foreign (export) market, dumping is a cross-border, international-level form of price discrimination, which is why countries use anti-dumping duties to protect their domestic industries from artificially cheap imports. It is not about differences within a single local market, within one industry's internal pricing, or purely a national-level phenomenon, since the defining feature of dumping is that it crosses national boundaries.

Final Answer:
Dumping involves price differences between the domestic and a foreign market, so it is an international-level practice, making option D correct.