The practice of selling goods overseas and often below the cost of production is known as

1. Analyze the question The question describes selling goods in foreign markets, often at a price lower than the cost of production. We need the term for this practice.

2. Explain the concept In international trade, dumping is the practice of exporting goods to another country at a price lower than the cost of production, or lower than the price charged in the home market. Producers or governments may do this to:

• Get rid of surplus goods
• Capture a foreign market and drive out competitors
• Earn foreign exchange

Dumping can harm local industries in the importing country, so many countries use anti-dumping duties, tariffs, or quotas to protect their producers.

3. Solution: check each option

• A. Retailing means selling goods in small quantities to final consumers. It is not tied to overseas sales or selling below cost.
• B. Dumping means selling goods abroad at very low prices, often below the cost of production. This matches the question exactly.
• C. Internal trade means trade within a country (home trade), not overseas.
• D. Advertising means promoting goods and services to buyers. It has nothing to do with pricing in foreign markets.

4. Answer The correct option is B. dumping.

5. Exam tip Link keywords to terms:

• "Overseas" plus "below cost" = dumping
• "Within the country" = internal/home trade
• "Small quantities to consumers" = retailing

Think of "dumping" like dumping rubbish: the exporter is throwing excess goods into another country's market at give-away prices. Well done, keep practising!