Dumping
A situation in which a firm sells its output to foreign consumers at a price that is less than what the firm charges its domestic consumers, or when a foreign firm prices its exports below their cost of production.
Dumping can force established domestic producers out of a market and lead to monopolistic positions by the exporting nation. For example, a glut of Chinese garlic exports in the mid 2000s forced many North American producers to switch crops and leave the market. In response, the U.S. has maintained an anti-dumping duty on fresh garlic from China.
Dumping can force established domestic producers out of a market and lead to monopolistic positions by the exporting nation. For example, a glut of Chinese garlic exports in the mid 2000s forced many North American producers to switch crops and leave the market. In response, the U.S. has maintained an anti-dumping duty on fresh garlic from China.