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Dumping Types

Dumping occurs when a company or country sells products at lower prices in foreign markets compared to their home markets, often to gain market share or eliminate competition. There are four types of dumping: predatory, persistent, sporadic, and reverse dumping, each with distinct characteristics. To counteract dumping's negative effects on domestic industries, countries may impose import tariffs or quotas.

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75 views1 page

Dumping Types

Dumping occurs when a company or country sells products at lower prices in foreign markets compared to their home markets, often to gain market share or eliminate competition. There are four types of dumping: predatory, persistent, sporadic, and reverse dumping, each with distinct characteristics. To counteract dumping's negative effects on domestic industries, countries may impose import tariffs or quotas.

Uploaded by

Harsh Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Dumping

Dumping is when a company or country sells a product at a lower price in a


foreign market than in its home market. It can be a way for a company to gain
market share, drive out competitors, or offload excess inventory.
Dumping can harm domestic companies and lead to price discrimination. To
protect against dumping, domestic markets may implement import tariffs or
quotas.

The four types of dumping are:


 Predatory dumping
Selling a product at a price lower than its production cost in a foreign market to
eliminate competitors
 Persistent dumping
Selling a product at a lower price in a foreign market than in the domestic market
over a long period of time
 Sporadic dumping
Selling excess products in a foreign market at a lower price when domestic
demand is low
 Reverse dumping
Selling a product at a higher price in a foreign market than in the domestic
market when demand in the foreign market is low

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