Dumping in the international market is a form of:
A) Price discrimination
B) Price skimming
C) Predatory pricing
D) Penetration pricing

Question

Quizplus · Accepted Answer

Dumping is a practice in which a company exports a product at a price lower than the price it normally charges in its domestic market. The purpose of dumping is to capture a larger share of the international market by driving out competition. This is an example of predatory pricing, which involves selling a product at a very low price with the intent of driving competitors out of business. Price discrimination, price skimming, and penetration pricing are pricing strategies that are not the same as dumping.

Dumping in the International Market Is a Form Of