A French firm sells its good at a lower price in England than in France.It follows that the French firm is necessarily
A) dumping.
B) saving domestic jobs.
C) being subsidized by the French government.
D) part of an infant industry.
E) none of the above

Question

Quizplus · Accepted Answer

Selling goods at a lower price in another country does not necessarily mean the firm is dumping, being subsidized, or part of an infant industry. There could be other reasons such as market strategy or cost differences.

A French Firm Sells Its Good at a Lower Price