Why do monopolistic firms practice international dumping?

Question

Quizplus · Accepted Answer

Monopolistic firms practice international dumping because they face more elastic demand conditions in their foreign market than in their domestic market. This means that they are able to charge a higher price in their domestic market without losing many customers, but if they try to charge the same high price in their foreign market, they will lose customers to competitors who offer lower prices. By practicing dumping, the firm can charge a lower price in the foreign market and still make a profit, while also discouraging competitors from entering the market.

Why Do Monopolistic Firms Practice International Dumping