When the price of a good is lower in export markets than it is in the domestic market ________ is said to occur.
A) dumping
B) transfer pricing
C) price escalation
D) price controls

Question

Quizplus · Accepted Answer

This situation is known as dumping, where a company sells its goods at a lower price in a foreign market than in its domestic market. It can be done either to increase market share or to get rid of surplus inventory. Many countries view it as an unfair trade practice and impose anti-dumping duties on such imports.

When the Price of a Good Is Lower in Export