Firms that use two-tiered pricing are vulnerable to charges of dumping.

Question

Quizplus · Accepted Answer

Two-tiered pricing, where a firm sells a product for a lower price in a foreign market than in its domestic market, can lead to accusations of dumping. This is because dumping involves selling goods in a foreign market at a price lower than the cost to produce them or lower than the price in the domestic market, potentially harming the local industry in the foreign market.

Firms That Use Two-Tiered Pricing Are Vulnerable to Charges of Dumping