Dumping

Discipline: Economics

Dumping is a practice in international trade that occurs when a company exports a product at a price lower that it normally charges domestically, and probably below its cost of production.

It is possible to view dumping in different ways. From a consumer viewpoint, dumping is beneficial, since it lowers the prices. From a protectionist viewpoint, however, dumping is harmful for the domestic producers, and thus laborers.

Whether or not dumping is a form of unfair competition is still a widely-debated issue.

Also see: anti-dumping, unfair competition

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