Executives want to set export prices below those that the firm charges domestically.What is the most likely problem the company will experience?
A)WTO antidumping regulations
B)consumer complaints
C)FDI restrictions
D)high tariffs

Question

Quizplus · Accepted Answer

Setting export prices below domestic prices may be viewed as dumping by the WTO, which is illegal and subject to antidumping regulations. The firm may face fines and legal action if found guilty of dumping. Consumer complaints may be a problem, but it is not as likely as the issue of dumping. FDI restrictions and high tariffs are not directly related to setting export prices below domestic prices.

Executives Want to Set Export Prices Below Those That the Firm