What Is Dumping in Price Discrimination

Dumping is considered a form of price discrimination. It occurs when a manufacturer lowers the price of an item entering a foreign market to a level that is less than the price paid by domestic customers in the originating country.

What is an example of dumping?

Dumping usually involves exporting large quantities or offloading a product on a foreign market. For example, if UK businesses started selling apples to the US for less than what they’re worth in the US, then US apple producers would have a hard time selling their products to the domestic market.

What is the dumping of goods?

What is dumping? Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.