When a foreign firm sells its exports at a lower price than its cost of production, the firm is
A) imposing an economies of scale cost.
B) competing in an infant industry.
C) dumping.
D) avoiding a tariff.

Question

Quizplus · Accepted Answer

Dumping occurs when a company exports a product at a price lower than the price it normally charges in its home market or below its cost of production. This is often done to gain market share in a foreign market or to offload excess production.

When a Foreign Firm Sells Its Exports at a Lower