If a firm charges a foreign market a lower price than it charges the domestic market that firm is said to be ________ its product.

Question

Quizplus · Accepted Answer

When a firm charges a lower price to a foreign market than it does to its domestic market, it is said to be "dumping" its product. This is often done to gain a foothold in a new market or to drive out competitors in that market. However, it can lead to accusations of unfair competition and may be illegal under international trade laws.

If a Firm Charges a Foreign Market a Lower Price