The threat of antidumping action limits the ability of a firm to use aggressive pricing to gain market share in a country.

Question

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Antidumping action involves imposing tariffs on goods imported into a country if they are being sold at a lower price than their fair market value, in order to prevent unfair competition from foreign firms. This makes it difficult for a firm to use aggressive pricing to gain market share in that country, as the resulting higher prices may undermine the firm's competitiveness.

The Threat of Antidumping Action Limits the Ability of a Firm