DUMPING LEGAL DEFINITION
The act of selling goods at less than fair market value, typically for the purpose of injuring a competitor and gaining market share. 3.
The selling of large amounts of a stock, or stocks in general, at whatever market prices are in effect. For example, investors might dump stocks on hearing of an outbreak of fighting in some part of the world. 4.
The selling of a product in one market at an unusually low price while selling the same product at a significantly higher price in another market. For example, a firm may sell a product in its home market at a price covering all costs, and then sell the product in a foreign market at a significantly lower price, covering only variable costs. See also antidumping 5.
The sale of goods of one nation in the markets of a second nation at less than the price charged within the first nation. Dumping can eliminate competitors by undercutting their prices 6.
Selling goods or commodities in another country at prices that are substantially below the going market price. International trade regulations attempt to prevent dumping. Violations may be reported to the World Trade Organization. 7.
Selling a large amount of securities in a market with no concern for what effect that is likely to have on the price or the product 8.
The selling of large amounts of a stock or stocks in general at whatever market prices are in effect. For example, investors might dump stocks upon hearing of an outbreak of fighting in some part of the world. 9.
The selling of a product in one market at an unusually low price while selling the same product at a significantly higher price in another market. For example, a firm may sell a product in its home market at a price covering all costs and then sell the product in a foreign market at a significantly lower price covering only variable costs
If a company exports a product at a price lower than the price it normally charges in its own home market, it is said to be "dumping" the product. Opinions differ as to whether or not such practice constitutes unfair competition, but many governments take action against dumping to protect domestic industry. The WTO agreement does not pass judgment. Its focus is on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the "anti-dumping agreement". (This focus only on the reaction to dumping contrasts with the approach of the subsidies and countervailing measures agreement.) The legal definitions are more precise, but broadly speaking, the WTO agreement allows governments to act against dumping where there is genuine ("material") injury to the competing domestic industry. To do so, the government has to show that dumping is taking place, calculate the extent of dumping (how much lower the export price is compared to the exporter’s home market price), and show that the dumping is causing injury or threatening to cause injury.
Dumping- Evolution of the term
It has long been customary to speak of one market as a ‗dumping ground‘ for the ―surplus‖ products of another market when the producers of the latter for any reason sell their commodities in the former at unusually low prices. From this usage it was a natural outcome to speak of selling in a distant market at reduced prices as ―dumping‖, but the word used in this sense appeared not to have entered into the literature of economics until the first years of the twentieth century. In 1903 and 1904, the tariff question was the dominant political issue in Great Britain, and in a huge output of polemical literature which marked the tariff controversy. The term became well established and appeared with or without apologetic quotation marks in book after book. The term ―dumping‖ has since found its way into the economic terminology of the French, German, Italian and probably other languages. Initially, it had a vague and uncertain meaning, and is still...
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