What is it called when producers sell abroad @ a price below their cost of production or their domestic price?

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What is it called when producers sell abroad @ a price below their cost of production or their domestic price?

2006-11-06 18:30:05 · 3 answers · asked by Colleen 2 in Business & Finance ➔ Other - Business & Finance

3 answers

Selling abroad below production cost is called "dumping". That is against many trade agreement (including WTO).

There is no specific term that I know for selling below a domestic price. Not only is having a different international price legal, it's standard practice and accounts for different purchase price parities (PPP) across countries.

2006-11-06 18:41:34 · answer #1 · answered by csanda 6 · 0⤊ 0⤋

Dumping.

2006-11-06 18:36:49 · answer #2 · answered by Anonymous · 0⤊ 1⤋

dumping

2006-11-06 18:37:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋