Dumping occurs when a company ________.
A) entering a foreign market charges either less than its costs or less than it charges at home
B) entering a foreign market charges more than the price in its home market
C) entering a foreign market charges prices that are lower than those charged by its competitors in this market
D) sets its price equal to its average cost of production
E) exports its products to a foreign country to increase its revenue in spite of excess demand in the home country

Question

Quizplus · Accepted Answer

Dumping occurs when a company enters a foreign market and charges either less than its costs or less than it charges at home. This is often done to gain a foothold in the new market and drive out competitors in the long term.

Dumping Occurs When a Company ________