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) dumping.
C) avoiding a tariff.
D) competing in an infant industry.

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 the foreign market or to offload excess production.

When a Foreign Firm Sells Its Exports at a Lower