The correct answer is A. Lower price in Mumbai and higher price in Delhi.
Dumping is the practice of selling goods at a price below cost in a foreign market. This can be done to gain market share, drive out competitors, or simply to get rid of excess inventory.
In the case of a cotton seller in India, dumping would refer to selling cotton at a lower price in Mumbai than in Delhi. This could be done to attract buyers in Mumbai, who may be more price-sensitive than buyers in Delhi. It could also be done to drive out competitors in Mumbai, who may not be able to match the lower prices.
Options B, C, and D are incorrect because they do not describe dumping. Option B describes selling cotton at a higher price in Mumbai than in Paris. Option C describes selling cotton at a lower price in Delhi than in Paris. Option D describes selling cotton at a higher price in Paris than in Mumbai.
It is important to note that dumping is not always illegal. In some cases, it may be considered a legitimate business practice. However, if it is done with the intent to harm competitors or
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