A company is said to be engaging in "cross market subsidization" when
it deliberately curtails its competitive efforts to win greater sales and market share in
those countries where it is unprofitable or only marginally profitable and shifts some of
its competitively valuable resources and capabilities to country markets with better
profit prospects.
it shifts cash from those countries where it has large profit sanctuaries to countries
where it has small profit sanctuaries.
it sells its products/services in one or more countries at prices that are well below the
prices at which it normally sells elsewhere.
it supports a competitive offensive in one market with resources, capabilities, and
profits (cash flows) diverted from operations in other country markets.
it closes its operations in those foreign countries where it is losing money and transfers
the resources to support its entry into new country markets.