GENERAL KNOWLEDGE

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 enables consumers in the importing country to obtain access to goods at an affordable price. However, it can also destroy the local market of the importing country, which can result in layoffs and the closure of businesses. The WTO and EU regulate dumping by putting tariffs and taxes on trading partners.

Detailed explanation-3: -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.

Detailed explanation-4: -What is Dumping in International Business? Dumping is a practice in international trade where the producer country or company sells a product in a foreign country at a lower price than the costs incurred in production and shipment to get a hold on the market.