the sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market. b. an inappropriate method for getting rid of byproducts from a production process. c. a method to increase competitiveness in a market.

Question

Miriam Lutz

Business

2 January, 22:26

the sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market. b. an inappropriate method for getting rid of byproducts from a production process. c. a method to increase competitiveness in a market.

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Answers (1)

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Bradshaw · Answer 1

a. The sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market.

Explanation:

In some cases we find dumpers in the an economic environment. There main objective is drive out competitors since they cannot sell below normal selling price.

The sale of good by the foreign supplier in another country below the normal price would create a monopolistic situation as they will be able to control the price and quality of the product.

For example, 10KG of wheat are sold normally for $5 locally in Country A by a supplier firm and are sold the same amount in Country B.

Then the supplier firm from Country A exports to Country B and decides to sell its 10KG of wheat for $2 in the foreign country. This action is called dumping or price dumping.