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 ?
This law provides a frame work for investigation and determination of dumping and consequential injury as well as imposition of anti-dumping duty to offset dumping" (National Tariff Commission, 2006).
The legislation requires that states have both administrative and criminal provisions to go after the businesses engaged in SUTA dumping and anyone who advises those businesses," Curry says.
Some free market purists argue that since the Asian crisis has discredited the economic model that encouraged dumping, the dumping itself will fade.
Morkre and Kelly (1994) found that over the period 1980-9 the average margin of dumping in the US was 33 per cent.
If a property owner gives notice of suspected dumping of hazardous substances, stop the user of the system from dumping.
Congress will soon be considering the Navy's request for a five-year exemption from compliance with regulations against dumping plastics at sea.
In the wake of recent revelations concerning the Soviet Union's dumping of nuclear reactors and radioactive waste into the ocean, Russian scientists met last week in Anchorage with experts from several Arctic nations to detail the history of disposal and discuss plans to assess the hazard.
One department swdy also found that women in the swale areas had babies with low birth weights during the years that Hooker was dumping in the canal.
We're thrilled that pushing a TONKA toy across the yard or dumping a TONKA truck bed full of blocks onto the bedroom floor has been a rite of passage for young boys for sixty years," said Leigh Anne Cappello, vice president of marketing for Hasbro's preschool brands.
Directorate General of Anti-dumping & Allied Duties (DGAD) conducts anti-dumping investigations on the basis of duly substantiated petitions filed by domestic industry alleging dumping of goods into the country causing injury.
It is reliably learnt that the NTC has also issued notice of dumping investigation against dumped imports of tiles from China.
One side of the JRB Side Dump Bucket is shaped like a standard bucket to hold material, while the other side has a 45-degree side-shoot dumping angle that allows for full side dumping and angle backfilling.