some countries export products at prices below the cost of production or the price charged in the domestic market. this practice is called

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19-12-2022
Business

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some countries export products at prices below the cost of production or the price charged in the domestic market. this practice is called

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qwrblue qwrblue · Answer 1 · 2022-12-23T04:11:06-05:00

Some countries export products at prices below the cost of production or the price charged in the domestic market. This practice is called dumping.

The term "dumping" is used in relation to international trade. It occurs when a nation or business exports a good at a price that is lower on the international market than it is on its home market. Dumping frequently jeopardizes the economic viability of the product's supplier or manufacturer in the importing country because it typically entails significant export volumes of a product.

Price discrimination is regarded as taking place while dumping. It happens when a manufacturer cuts the price of a product that is being sold in a foreign market so that it is less than what domestic consumers in the nation of origin would pay. The act is regarded as deliberate in an effort to get a competitive edge in the import market.

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