A company that exports products at a price lower than its domestic market price is using a skimming policy abroad.

Question

Quizplus · Accepted Answer

A skimming pricing policy involves setting a high price for a product at its introduction to the market, and gradually reducing the price over time. This strategy is often used for new or innovative products with limited competition. In contrast, exporting products at a lower price than the domestic market price is known as dumping, which is typically considered an unfair trade practice.

A Company That Exports Products at a Price Lower Than