Countries sometimes fear that foreign producers are pricing their exports artificially low.This fear is most likely based on the assumption that ________.
A)foreign companies will lack the earnings to repay their foreign debt
B)insufficient earnings will be available to improve product technology
C)foreign producers will charge exorbitant prices after putting competitors out of business
D)developing countries will be unable to maintain critical industries needed in times of war

Question

Quizplus · Accepted Answer

This fear is based on the assumption that foreign producers might engage in predatory pricing, initially setting prices low to drive competitors out of business, and then raising prices significantly once they have established a monopoly or dominant position in the market.

Countries Sometimes Fear That Foreign Producers Are Pricing Their Exports