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Differentiate between a tariff and a quota in international trade, and explain the concept of "dumping."

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Final answer:

A tariff is a tax on imported goods, while a quota is a limit on the quantity of imports. Dumping refers to selling products at a price below the cost of production.

Step-by-step explanation:

A tariff is a tax that a government imposes on imported goods, which increases the price of those goods and makes them less competitive compared to domestically produced goods. On the other hand, a quota is a physical limit on the quantity of a specific good that can be imported into a country. It restricts the amount of imports and protects domestic industries from foreign competition.

The concept of "dumping" refers to when a company or country sells its products in another country at a price much lower than the cost of production, often driven by the goal to gain a competitive advantage or eliminate competitors. It is considered an unfair trade practice and can harm domestic industries in the country where the goods are dumped.

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