dumping

  

Definition

Exporting goods at prices lower than the home-market prices. In price-to-price dumping, the exporter uses higher home-prices to supplement the reduced revenue from lower export prices. In price-cost dumping, the exporter is subsidized by the local government with duty drawbacks, cash incentives, etc. Dumping is legal under GATT (now WTO) rules unless its injurious effect on the importing country's producers can be established. If injury is established, GATT rules allow imposition of anti-dumping duty equal to the difference between the exporter's home-market price and the importer's FOB price.

Use dumping in a sentence

  • You should never do any illegal dumping or if you get caught you will get a very bad reputation in your community.

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  • The dumping was a great strategy for the firm operating in different countries across the globe as they were able to take advantage of arbitrage as well.

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  • The sign read no dumping, so I knew we could not drop off our old couch here and leave it, because it would be violating the law.

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