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Dumping is the act of selling goods below costs in selected markets in an effort to gain market share or eliminate competition.

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  • Dumping
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  • Dumping is the act of selling goods below costs in selected markets in an effort to gain market share or eliminate competition.
  • In economics, "dumping" can refer to any kind of predatory pricing. However, the word is now generally used only in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at an unfairly low price.
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abstract
  • Dumping is the act of selling goods below costs in selected markets in an effort to gain market share or eliminate competition.
  • In economics, "dumping" can refer to any kind of predatory pricing. However, the word is now generally used only in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at an unfairly low price. What level constitutes "unfair" may be objectively defined as a price lower than the price in the manufacturer's own country, or lower than the actual cost of production. In practice though, many governments accuse foreign producers of committing dumping simply because the domestic industry finds it difficult to compete with the imports, irrespective of whether the producer's actions are actually improper.
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