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Chapter 15: Problem 1

Define: a. tariff b. dumping

Short Answer

Expert verified
A tariff is a tax or duty imposed by a government on imported goods to allow domestic producers to compete more effectively. Dumping is when a company exports a product at a price lower than the market price in its home market, usually to increase market share in a foreign market or drive out competition.

Step by step solution

01

Define Tariff

A tariff is a tax or duty that a government places on a class of imported goods. In international commerce, a tariff is usually imposed to raise the price of imported goods, so that domestic producers can compete more effectively within their domestic market.
02

Define Dumping

Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own domestic market. The intent of dumping is to increase market share in a foreign market or drive out competition.

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Most popular questions from this chapter

Suppose Japan can produce either 100 cars and 30 television sets or 80 cars and 60 television sets. What is the opportunity cost of producing 1 television set?

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