Charging of lower price abroad than at home for the same commodity because of greater elasticity of demand in the foreign market is known as
A) price discrimination.
B) dumping.
C) transfer pricing.
D) transfer discrimination.

Question

Quizplus · Accepted Answer

Dumping refers to the practice of exporting a product at a price lower than the price it normally commands in the home market, often because of differences in market demand elasticity. This strategy is used to gain market share in the foreign market by undercutting local prices.

Charging of Lower Price Abroad Than at Home for the Same