When a firm sells a product in a foreign country below its domestic price or below its actual cost it is referred to as
A)dumping.
B)surplus marketing.
C)loss-leader pricing.
D)second-market pricing.
E)entrepreneurial pricing.

Question

Quizplus · Accepted Answer

This practice is known as dumping, and it is typically done to gain market share or drive out competitors in a foreign market. It is often considered an unfair trade practice and is regulated by international trade laws, such as those set by the World Trade Organization.

When a Firm Sells a Product in a Foreign Country