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.
dumping, selling goods at less than the normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation.
Dumping is usually done to drive competitors off the market and secure a monopoly, or to hinder foreign competition.
Dumping is considered a form of price discrimination. It occurs when a manufacturer lowers the price of an item entering a foreign market to a level that is less than the price paid by domestic customers in the originating country. The practice is considered intentional with the goal of being obtaining a competitive advantage in the importing market.
- 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.
- The biggest advantage of dumping is the ability to flood a market with product prices that are often considered unfair.
- Dumping is legal under WTO rules unless the foreign country can reliably show the negative effects the exporting firm has caused its domestic producers.
The Advantages and Disadvantages of Trade Dumping.
International Attitude on Dumping
Real World Example of Dumping Tariffs in International Trade
Once the competitors are off the market (using dumping in business) the company creates a monopoly and starts increasing their prices.
This dumping action takes time ,some times years to get there The first signs you see are when that business what ever it is about, starts growing year over year with two digits and the competition stop growing having negative digits YOY.
Sounds familiar at this time.?
Is any resemblance pure coincidence?
Is it what was happening in the world`s smartphone business?