In international markets, dumping may be deliberately employed to drive local firms out of business, paving the way for much higher future prices by foreign suppliers.

Question

Quizplus · Accepted Answer

This statement is true. Dumping involves selling goods at prices lower than their cost of production, often with the intention of eliminating competition and gaining a dominant market position. Once local firms go out of business, foreign suppliers can raise their prices without facing any competition, resulting in much higher prices for consumers.

In International Markets, Dumping May Be Deliberately Employed to Drive