Price discrimination is indistinguishable from dumping. Is this an accurate assu

Business & Finance
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Price discrimination is indistinguishable from dumping. Is this an accurate assumption? Why or why not.

Oct 5th, 2015

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To some extent, this assumption may accurate but in most cases, it is wrong. A firm selling an item at a lower price in a foreign market than it sells it the country of origin will be said to be dumping if such price it is selling is lower than the production cost. However, If such a lower price is higher than the production cost of the given item, then the firm can best be said to be practicing price discrimination and not dumping. Thus, this statement may not be always accurate. 

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Oct 5th, 2015

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