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International Price Discrimination

Very often products going to the export market are priced lower .than those sold domestically, as the price elasticity of demand is greater in the foreign market. This is often referred to as international price discrimination or dumping. The price elasticity of demand for the product of the monopolist is higher abroad because of competition from other nations in the foreign market. In the domestic, market import tariff and other trade barriers restrict foreign competition. Import restrictions separate the foreign market from the domestic market. In the last decade, Japan was accused of dumping steel, television and computer chips in the United States. 

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