In 1997, two South Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were accused of selling dynamic random access memory chips (DRAMs) in the U.S. market at below their costs of production. It was alleged that the firms were trying to unload their excess production in the United States. This is an example of

a. import quota.
b. ad valorem tariff.
c. subsidy.
d. dumping.

Question

15-08-2019
Computers and Technology

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In 1997, two South Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were accused of selling dynamic random access memory chips (DRAMs) in the U.S. market at below their costs of production. It was alleged that the firms were trying to unload their excess production in the United States. This is an example of

a. import quota.
b. ad valorem tariff.
c. subsidy.
d. dumping.

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ofentsemaphalla ofentsemaphalla · Answer 1 · 2019-08-19T21:18:50+02:00

ofentsemaphalla ofentsemaphalla

19-08-2019

Answer:

d. dumping.

Explanation:

In international trade, dumping is described loosely as selling products on a foreign market below their manufacturing expenses or selling products on a foreign market below their ' reasonable ' market value.

It is a form of injury pricing, a difference in cost aimed at harming the competition.

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