alleryStart learning →What is predatory dumping?
ASelling at a low price only during a national holiday season
BSelling below cost solely to clear stock at the end of a year
CSelling in a market where a firm holds an absolute advantage
DSelling at impossibly low prices to destroy foreign competitors
Answer & Solution
Correct answer: D. Selling at impossibly low prices to destroy foreign competitors
1. Dumping in general means a lower price abroad than at home.
2. Predatory dumping is the form that industrialized countries worry about most.
3. It is an attempt to gain control of a foreign market.
4. The method is destroying competitors with impossibly low prices.
5. Once rivals are gone the dumper controls the market and can raise prices again.
6. Seasonal discounting and year-end stock clearance lack that intent to seize the market.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.4 Fostering Global Trade_
Keep practising Competing in the Global Marketplace
Browse all Competing in the Global Marketplace questions for BBA International Business, or explore more International Business topics.
Related questions
How many Sustainable Development Goals did the United Nations member nations adopt in 2015What defines a multinational corporation?How is Gross National Income defined?What is infrastructure?Why does business slow down in Muslim countries during Ramadan?What is nationalism?What is countertrade?What is direct foreign investment?