ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Dumping occurs 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-2: -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-3: -Dumping is a term that refers to the action of a foreign company to sell a product either below its production cost or below the domestic market price in a domestic market. The types of dumping in economics are sporadic dumping, predatory dumping, persistent dumping, and reverse dumping.

Detailed explanation-4: -Dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer’s sales price in the country of origin ("home market"), or at a price that is lower than the cost of production.

Detailed explanation-5: -Dumping usually involves exporting large quantities or offloading a product on a foreign market. For example, if UK businesses started selling apples to the US for less than what they’re worth in the US, then US apple producers would have a hard time selling their products to the domestic market.