Selling a product abroad for less than the cost of production is called ________.
A) setting up a business office
B) dumping
C) imposing tariffs
D) direct foreign investment

Question

Quizplus · Accepted Answer

Selling a product abroad for less than the cost of production is known as dumping. This unethical business practice is often done to gain a competitive advantage in the foreign market by driving out local competitors. It can also harm the domestic industry by decreasing demand and employment opportunities. Many countries have anti-dumping laws in place to prevent this activity.

Selling a Product Abroad for Less Than the Cost of Production