Here's the question bank on all the marketing officer topics.
Occasional sale of a commodity at a lower price abroad in order to unload an unforeseen and temporary surplus of the commodity without reducing domestic prices is called:
The correct answer is Sporadic dumping Dumping is the commercial practice of selling goods abroad in which the company sells goods abroad at a price less than the value of the goods sold in their country.This is done to conquer new markets by creating monopolies by eliminating competition.In this the company does not sell its products at regular dumping prices.This can be a short-term or temporary phenomenon.Important Points Sporadic dumping:This is a practice of selling goods in foreign market at a lower price than domestic market occasionally get rid of unwanted inventory.Reason for this dumping are as follows:To liquidate excess inventory which the company is not able to sell in domestic market.To dispose of items of obsolete technology.To clear goods of perishable nature.Example: In the early twenty-first century, China was a major producer of CD, DVD, and MP3 players. The demand for outdated CD players, CDs, DVDs, and MP3 players has decreased since the introduction of storage-based media devices. It left producers with an inventory of unsold goods.They immediately stopped any new production of these players and the media. They resorted to sporadic dumping to eliminate and liquidate their unsold stocks. As a result, neighbouring countries were flooded with these players and their media.Additional Information Persistent dumping: Persistent dumping occurs when a country continually offers products at a lower price in the foreign market than in the domestic market due to steady demand for a product in a foreign market.Predatory dumping: Predatory dumping is a form of anti-competitive activity in which a foreign corporation undercuts domestic competitors by pricing its products below market value. Outpricing competitors over time can help a corporation establish a monopoly in its target market.Export subsidies: Export subsidy is a government policy that encourages the export of commodities while discouraging the sale of goods on the domestic market. It might take the form of direct payments, low-cost loans, tax breaks for exporters, or government-funded foreign advertising.
Scan QR code to download our App for
more exam-oriented questions
OR
To get link to download app