Question

Why is it seldom feasible for company to absorb the high cost of international transportation and reduce the net price received?

Answer 1

It is seldom feasible for a company to reduce their absorbing transportation costs (which is an example of price to an overseas market) for the reason that “dumping tariffs will just raise the price back up by inducing a new cost on the manufacturer.” In other way we can say that for a company to absorb the high cost of international transportation and reduce the net price received is seldom possible because of lower prices than competition in the country of manufacture (origin).