When a Firm Sells Its Product Abroad for Less Than

question 48

Multiple Choice

When a firm sells its product abroad for less than the price at which it sells it in its domestic market, it is often accused of

• A)countervailing.
• B)strategic selling.
• C)dumping.
• D)cross- subsidization.
• E)predatory pricing.

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Definitions:

Specialization

The practice of focusing on a specific area or activity to achieve greater efficiency and productivity.

Production Possibilities

A graphical representation of the alternative combinations of goods and services an economy can produce when all its resources are fully and efficiently utilized.

Specialize

To concentrate on and become expert in a particular subject or skill.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or internationally.