The practice of selling a product in a foreign market at a price lower than it commands in the producer's domestic market is called _____.
A)global sourcing
B)dumping
C)sole sourcing
D)value engineering

Question

Quizplus · Accepted Answer

Dumping is the practice of selling a product in a foreign market at a price lower than it commands in the producer's domestic market. This is often done to gain market share in the foreign market and drive out local competition. However, it is considered unfair competition and is illegal under international trade laws. Global sourcing refers to the practice of sourcing goods or services from global markets to reduce costs or improve quality. Sole sourcing is the practice of using only one supplier for a particular good or service. Value engineering refers to a systematic approach to improving the value of goods or services by reducing costs while maintaining or improving their quality.

The Practice of Selling a Product in a Foreign Market