Intracompany trade represents the exporting of products by one country to other countries below cost.

Question

Quizplus · Accepted Answer

Intracompany trade, also known as intrafirm trade or intra-group trade, refers to the trade between two subsidiaries of the same multinational company, where the prices are determined based on the market value rather than being below cost. Therefore, it is not the exporting of products below cost by one country to other countries.

Intracompany Trade Represents the Exporting of Products by One Country