________ occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods.
A) Dumping
B) Comparative advantage
C) Learning-by-doing
D) A tariff

Question

Quizplus · Accepted Answer

Dumping occurs when a firm sells its goods in a foreign market at a lower price than it sells them in its domestic market or at a price lower than the cost of production. The goal of dumping is to gain market share by undercutting competitors' prices. It is often considered an unfair trade practice and can lead to retaliation from affected countries.

________ Occurs When a Foreign Firm Sells Its Exports at a Lower