dumping

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Dumping

Used in the context of general equities. Offering large amounts of stock with little or no concern for price or market effect.

Dumping

1. The act of exporting a good to a country where the exported good is much less expensive in the importing country than domestically produced goods of the same type. This can result in a handsome profit for the exporter. Importing countries attempt to counteract dumping by setting up tariff barriers. Some countries peg their currencies artificially low so as to enable dumping. See also: Outsourcing.

2. The act of selling at a loss. This may apply to selling a stock, especially in a panic sale, to minimize losses. Alternatively, it may apply to a company selling low on purpose to gain market share or force competitors into a costly price war.

dumping

1. 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.
2. 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.

dumping

the sale of a product by a firm in an EXPORT MARKET at a price below that charged in its own domestic market. Firms may choose to lower their overseas sales prices in order, for example, to dispose of surplus output, or as part of a MARKET PENETRATION PRICING strategy aimed at building the firm's market share in export markets over the longer term. Whatever the firm's motivation, such a pricing practice constitutes ‘unfair’ INTERNATIONAL TRADE under WORLD TRADE ORGANIZATION conventions, and member countries are entitled to protect their domestic producers against dumping by applying anti-dumping duties, or countervailing duties on offending products. See LOCAL CONTENT RULE. PROTECTIONISM.

dumping

the EXPORT of a good at a price below that charged for the good in the domestic market. Dumping may occur as a short-term response to a domestic recession (i.e. surplus output is sold abroad at a cut-price simply to off-load it) or as a longer-term strategic means of penetrating export markets (once a foothold has been gained, prices would then be increased to generate profits). Either way, dumping is viewed as ‘unfair’ trade and is outlawed by the trade rules of the WORLD TRADE ORGANIZATION. See BEGGAR-MY NEIGHBOUR POLICY, COUNTERVAILING DUTY.
References in periodicals archive ?
Changes will also be introduced to improve the way the merits review of anti-dumping is undertaken by the Anti-Dumping Review Panel.
While the application of anti-dumping duties on polypropylene by the Indian government is intended to unfairly protect large Indian petrochemicals companies from global competition, especially during these tough times, there are many factors that suggest the support provided to these large industries will be at the expense of Indian downstream industries and average consumers," he emphasized.
The minister eventually decided to enforce the recommendations that accompanied the committee's report, culminating in the raising of anti-dumping duties on the imported product.
GPCA has instituted an Advocacy Committee that will adopt a system to alert members about anti-dumping cases and work closely with GCC governments and the GCC Secretariat to defend the regional industry against such unwarranted actions.
Interested parties have until October 13 to send in the necessary replies, although a decision on imposing anti-dumping duties may come next year.
biodiesel exporters to different degrees, with some companies due to face the heavy burden of both anti-subsidy and anti-dumping duties.
Fayez, director general of the Technical Secretariat for Anti-Dumping, said there has been an increase in the number of cases related to dumping in recent times, which has forced the UAE government to establish bodies to deal with the issue.
In 2004, Washington imposed anti-dumping duties against shrimp from Thailand and other countries due to complaints from US shrimpers who said that low-cost imported shrimp was hurting the domestic industry.
But in many cases the Bush administration has simply used anti-dumping statutes as backdoor protectionism that could have been resisted if it had chosen to do so.
7% countervailing duty on Canadian lumber imports and anti-dumping duties averaging about 2.
Taiwan has initiated anti-dumping investigations into China-made cheap towels, the Finance Ministry said Thursday, becoming the first case of its kind brought by Taiwan against China since both sides entered the World Trade Organization in 2002.

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