___________ is the practice of selling products below the cost of manufacturing or below their domestic price with the intention of driving other producers out of the market and then raising prices to profitable levels.

Question

Quizplus · Accepted Answer

Dumping is the practice of selling products at a price lower than their cost of production or their domestic price in another country. The intention is to drive competitors out of the market and gain a larger market share. Once the competitors are out, the producer can increase the prices to profitable levels. Dumping is considered an unfair trade practice and is prohibited by most countries.

___________ Is the Practice of Selling Products Below the Cost