Dumping
Selling products at prices below domestic prices in foreign markets.
Formula
Dumping Price < Domestic Market Price
Real World
Chinese steel manufacturers have repeatedly been accused of dumping steel into EU markets at prices below production cost, prompting the EU to impose anti-dumping tariffs to protect domestic producers.
Exam Focus
Always link dumping to a specific motive (e.g. market penetration vs. surplus clearance) — vague answers lose application marks.
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