Question

Mexican officials claimed that U.S. apple growers were _________ when they appeared to be selling red and golden delicious apples in Mexico for less than the cost of producing them. This resulted in Mexico adding a tariff to these products.a. back-channel marketing

b. parallel importing
c. countertrading
d. dumping
e. microfinancing

Answer 1

D. Dumping

Step-by-step explanation:

Dumping is a term associated in trade between two or more nations (international trade). It occurs when a country or company export product to another country at a price that is lower in foreign importing market than the price in the exporter's domestic market and also when the exporter is selling for a price that is lower than the cost of production. It creates a form of unfair competition as products are being sold at a price that does not accurately reflects their cost.

In this case, the US apple growers were injuring the pricing of apple in the Mexican market by selling below production cost.