Folk-guitar manufacturer, Play-Guitars sells its guitars in its home country for at least $1000.00. To get a hold of the Canadian market, Play-Guitars sold its products for $500.00. What is this known as?

Question

Quizplus · Accepted Answer

This is known as dumping, which is when a company sells its products in a foreign market for a lower price than what it sells for in its home market. This can be seen as a predatory pricing strategy, used to gain market share and undercut local competition.

Folk-Guitar Manufacturer, Play-Guitars Sells Its Guitars in Its Home Country