What is it called when products are sold for less in a foreign country than in the seller's home country?

The term used when products are sold for less in a foreign country than in the seller's home country is known as "dumping." This practice often occurs when a manufacturer sells goods at a price lower than the market value of those products in their home market. The intent behind dumping may vary; it could be a strategy to gain market share in the new market by undercutting local competitors, or it might be an attempt to dispose of excess inventory.

Dumping can sometimes lead to significant negative effects on the economy of the importing country, as it can harm local businesses unable to compete with the lower prices. This practice is often scrutinized under international trade laws, as it can create unfair competition and result in trade disputes.

The other terms provided refer to different concepts. Pricing strategy relates to the overall approach a company takes in setting prices for its products, which may not necessarily involve international pricing. Global pricing refers to the setting of prices for a product on a worldwide basis, considering factors like currency fluctuations and regional economic conditions. Market saturation describes a situation where a product has become so widespread in a market that any additional sales growth is difficult to achieve. Therefore, the correct identification of dumping highlights the specific context of pricing behavior in international trade.