Final answer:
The practice of selling exports at lower prices than domestic competitors, as described, is known as predatory pricing or 'dumping,' not countertrading. Countertrading involves barter-like exchanges, unlike predatory pricing which aims to undercut competition.
Step-by-step explanation:
When an Indian company exports a technology product to American customers at a price that is well below the price charged by American companies, this is not an example of countertrading. Instead, it is an example of predatory pricing or 'dumping', which may be part of a strategy to drive out domestic competition and later raise prices after gaining a dominant market position. Countertrading involves bartering and exchanging goods and services in place of money transactions, which is different from selling products at lower prices to undermine competitors.
It's essential to distinguish between the different trade practices, such as foreign trade, predatory pricing, and countertrading, to understand the consequences and motivations behind these actions. Engaging in predatory pricing can disrupt domestic markets, leading to layoffs and loss of domestic firms. Arguments against responding to such trade disruptions by restricting trade are similar to those against shutting down technological advancements; both are seen as counterproductive.