Why Would Foreign Firms Export a Product at Less Than

question 16

Essay

Why would foreign firms export a product at less than its cost of production-which presumably means making a loss? This question has two possible answers, discuss both of them.

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Definitions:

Pruning

The process by which extra neurons and synaptic connections are eliminated in the brain to increase the efficiency of neural transmissions.

Assimilation

The cognitive process of integrating new information into existing frameworks or understanding.

Initial Understanding

The basic or preliminary comprehension of a subject or situation before deeper knowledge is acquired.

Conservation

The principle (which Piaget believed to be a part of concrete operational reasoning) that properties such as mass, volume, and number remain the same despite changes in the forms of objects.