Selling a product in a foreign country at a price lower than

Selling a product in a foreign country at a price lower than the price charged by the same firm in its hr e market or at a price below it costs of produc International trade Import Dumping Export

Solution

Selling a product in a foreign country at a price lower than the price charged by the same firm in its home market or at a price below it costs of production is

Answer – DUMPING

Dumping is a special case of price discrimination.

Dumping is a situation in which the price, firm charges for its goods in a foreign market is lower than either the price it charges in its home market or the production cost.

Dumping takes place when a monopolist sells a portion of his output in a foreign market at a very low price and the remaining output at a high price in the home market.