dumping
DUMP-ing
/ˈdʌm.pɪŋ/
The export of a product at a price lower in foreign markets than the price charged in the domestic market.
An aggressive pricing tactic intended to undercut local rivals in foreign markets to achieve dominant market share.
The story behind the word. Originating from Middle English 'dumpen' (to drop or throw down heavily), the word entered commercial vocabulary in the late 19th century to describe discarding surplus factory inventory into foreign markets at cut-rate prices.
Word relationships
- underpricing: Underpricing can simply mean competitive discounting, whereas dumping specifically means selling abroad below domestic price or production cost.
- fair trade: Fair trade mandates non-predatory pricing structures reflecting true labor and market costs.
Commonly confused with
- subsidy: A subsidy is government funding, which frequently enables domestic firms to engage in foreign dumping.
Word family
- dump (verb): To sell goods abroad at unfairly low prices
- anti-dumping (adjective): Designed to counteract illegal dumping
Collocations
- predatory dumping
- anti-dumping duties
- allegations of dumping
Example sentences
- "The foreign steelmaker was accused of predatory dumping after flooding the market with below-cost steel." International trade dispute
- "Regulators imposed counter-tariffs on foreign solar panels to neutralize unfair dumping practices." Anti-dumping enforcement
Memory hook
DUMPING excess inventory overseas at trash-bin prices. Selling abroad below cost.
When not to use
Do not use for physical waste disposal when analyzing international economic law.
Fun facts
- Under World Trade Organization rules, nations are legally permitted to levy anti-dumping tariffs if foreign dumping causes material harm to local industry.
Related words
Explore more words
predatory, anticompetitive, export, price-fixing, subsidy, cartel
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