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When a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market?Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country. Thus, in the simplest of cases, one identifies dumping simply by comparing prices in two markets.
What is the term for selling a product below cost in another country?Dumping refers to the practice by firms of selling products abroad at below costs or significantly below prices in the home market.
What happens when domestic price is lower than world price?If the domestic price is lower than the world price, the country has a comparative advantage and should export the product. If the domestic price is higher than the world price, the country does not have a comparative advantage and should import the product.
When a country exports a product at a price that is lower than the price in domestic market is called?3. Persistent dumping. When a country consistently sells products at a lower price in the foreign market than the local prices, it is called persistent dumping.
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