Firms that are engaging in persistent dumping need to be able to prevent resale between the foreign and domestic markets.

Question

Quizplus · Accepted Answer

This statement is true as firms engaging in dumping may try to sell their products at a lower price in the foreign market, but if those products are then resold back into the domestic market, it can lead to a distortion of competition and harm domestic producers. To prevent this, firms may employ tactics such as exclusive distribution agreements or differentiated product lines to ensure that their products do not make their way back into the domestic market.

Firms That Are Engaging in Persistent Dumping Need to Be