Multinational firms using profit gained in a market where they have a strong competitive position to beef up their competitive position in a weak market is referred
To as the:

Question

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The term used to describe this practice is cross-subsidization of markets. Multinational firms are able to use their profits gained in a market where they have a strong competitive position to invest in and improve their position in a weaker market. This can give them an advantage over local competitors and help them to gain a foothold in a new market. However, this practice can also be seen as unfair competition by some players in the market, as it makes it difficult for them to compete on price and other factors.

Multinational Firms Using Profit Gained in a Market Where They