When a company sells a product for a price that is less than the cost of producing the product, it is engaging in, dumping. In the world of finance, dumping occurs when a firm or a nation sells its goods abroad at a cheaper price than it does at home market.
It might appear that the dumping organization will lose a great deal of money if they charge less. The dumping enterprise is not actually losing money, hence this is not the situation.
International price differential is a common technique among multinational corporations (MNCs). They set an item's price based on what each country's consumers can afford. For instance, Tide detergent costs less than one-fifth as much in China as it does in the United States. However, the MNC will price the goods more expensively if a certain country is prepared to pay more for it.
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