Dumping refers to selling goods in foreign markets at prices below what is charged in the home market, in order to gain market share. There are three types of dumping: intermittent, when production exceeds domestic demand; persistent, when a monopolist continuously sells excess production abroad cheaply; and predatory, when a company sells at a loss initially to drive out competitors. Countries employ anti-dumping measures like tariffs, import quotas, or bans to counter the objectives of dumping, which include entering new markets, selling surplus production, expanding trade, and growing industries.

1. DUMPING
Meaning:
The offering for sale of large quantities (of goods) on
foreign markets at low prices in order to maintain a high price in
the home market and obtain a share of the foreign markets.
Export price is less than the normal price in the exporting
country
The sale of goods abroad at a price which is lower than the
selling price of the same goods at the same time in the same
circumstances at home, taking account of difference in transport
costs.

2. Types of dumping
Intermittent Dumping: When the production of a
product is more than the demand in the home country, the
stocks piled up even after sales.
Persistent Dumping: The monopolist sells the remaining
production in foreign countries at a low price continuously.
Predatory Dumping: The monopolist sells the product in
a foreign market at a low price initially with a view to drive
away the competitors and increase the price after the
competitors leave the market.

3. Objectives of dumping:
To enter the foreign market
To sell surplus production
To widen trade relations
To expand the existing industry

4. Anti-dumping measures:
Tariff duty: Importing country imposes high rate of import
tariff on such type of goods.
Import Quota: Importing country in addition to tariff duty,
restricts the volume of imports.
Import restriction: Importing country bans the import of
particular good or all the goods from the dumping country.
Voluntary export restraint: Exporting countries realize the
negative effects of dumping, voluntarily come for bilateral
agreements to avoid dumping.

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