Dumping refers to a situation when a company exports a good into
a particular country at a lower price than what the price already
prevailing in that market. For example, a ABC company based in
country 1 exports mobile phones to country 2 at a price of $20
which is lower than the domestic price in that market. This will
cause the market share of ABC company to increase in the
market.
Dumping refers to a situation when a company:
c)
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exports to a foreign market at a price that is either
lower than the domestic prices in that country or less than the
cost of production. |