Final answer:
The statement is false as market skimming, which involves setting high initial prices, is significantly different from dumping that entails selling below production costs to undermine competition.
Step-by-step explanation:
The statement that a global company using market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets is false. Market skimming typically involves setting high prices for new products to gain maximum revenue layer by layer from segments willing to pay the high price. On the other hand, dumping is the practice of selling goods in a foreign market at a price below the cost of production, often with the intent to drive out domestic competition and then raising prices. This predatory strategy is discussed in the context of monopoly and anti-dumping laws.
Dumping and market skimming are inherently different strategies. While predatory pricing related to dumping reflects a sinister, long-term strategy to initially sell at losses and then raise prices once the competition is eliminated, market skimming is not associated with selling below cost. Furthermore, cases of foreign firms practicing predatory pricing to the extent of eliminating domestic competition and then significantly raising prices are not well documented, with competition among foreign producers typically continuing strongly.