Final answer:
Market skimming, which involves setting high initial prices, is not the same as dumping, which is selling below cost to drive out competition. Therefore, a company using market skimming is unlikely to face charges of dumping.
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 involves setting high prices initially to 'skim' segments of the market that are willing to pay more. This is the opposite of dumping, which refers to selling products at prices below the cost of production to drive out domestic competitors, a strategy sometimes known as predatory pricing. Anti-dumping cases, according to economic theory, are questionable as they assume the producers will raise prices after eliminating competition, which historically has not been documented. Furthermore, low prices benefit consumers, even if they are challenging for domestic producers.