_____ occurs when a firm temporarily charges a low price in the foreign export market, with the purpose of driving its foreign competitors out of business.
A)Persistent dumping
B)Cyclical dumping
C)Predatory dumping
D)Seasonal dumping

Question

Quizplus · Accepted Answer

Predatory dumping occurs when a firm charges a low price in the foreign market with the intention of driving its competitors out of business and establishing a monopoly in the market. This strategy is considered illegal under international trade laws. Persistent dumping refers to a long-term practice of charging lower prices compared to the domestic prices, whereas cyclical and seasonal dumping occur during specific periods of the year or economic cycles.

_____ Occurs When a Firm Temporarily Charges a Low Price