A firm that faces problems of falling sales and excess productive capacity might resort to international dumping if it:

Question

Quizplus · Accepted Answer

International dumping involves selling products in a foreign market at a price lower than in the domestic market or below the cost of production. The firm can resort to this strategy if it can cover its variable costs, as this would allow it to utilize excess capacity and mitigate losses from falling sales.

A Firm That Faces Problems of Falling Sales and Excess