Dumping occurs when ________.
A) a company entering a foreign market charges either less than its costs or less than it charges at home
B) a company entering a foreign market charges more than the price in its home market
C) a company entering a foreign market charges prices that are lower than those charged by its competitors in this market
D) a company sets its price equal to its average cost of production
E) a company 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 entering a foreign market charges either less than its costs or less than it charges at home. This is usually done to gain market share and drive out local competition. However, it can be seen as unfair competition and is often subject to trade restrictions and anti-dumping laws.

Dumping Occurs When ________