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AP® Macroeconomics

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Dumping Occurances

APMACR-OKMAGK

Dumping occurs when

A

a foreign country pegs its currency at a certain trade value by manipulating markets.

B

a foreign country pegs its currency to a precious material such as gold, then floods the market with gold bullion.

C

foreign producers intentionally sell products in a foreign market at prices cheaper than it costs to make and ship.

D

foreign producers put up protective tariffs against a specific country while increasing existing exports to that country.

E

a country stops producing a product due to harmful negative externalities and instead produces the product in a foreign land so as to avoid polluting its own land.