When a firm sells a product in a foreign country below its domestic price or below its actual cost,it is referred to as
A)loss-leader pricing.
B)surplus marketing.
C)dumping.
D)second-market pricing.
E)entrepreneurial pricing.

Question

Quizplus · Accepted Answer

Selling a product in a foreign country below its domestic price or cost is referred to as dumping. This practice is often used to gain a foothold in a new market or drive out competition. However, it can be seen as unfair trade practice and may result in trade disputes or penalties.

When a Firm Sells a Product in a Foreign Country