ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country. Thus, in the simplest of cases, one identifies dumping simply by comparing prices in two markets.

Detailed explanation-2: -Dumping is a term used in the context of international trade. It’s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter’s domestic market.

Detailed explanation-3: -Overview. A standard technical definition of dumping is the act of charging a lower price for the like product in a foreign market than the normal value of the product, for example the price of the same product in a domestic market of the exporter or in a third country market.

Detailed explanation-4: -What is dumping? Dumping is when foreign firms dump products at artificially low prices in the European market. This could be because countries unfairly subsidise products or companies have overproduced and are now selling the products at reduced prices in other markets.

Detailed explanation-5: -Dumping occurs when the exporter exports a good to another country at a lower price than the product’s domestic price. Hence it is a practice associated with international trade. Its classification includes sporadic, predatory, reserve, and persistent.