Economy

What is dumping? »Its definition and meaning

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It is a base sale of a product for well below its normal or original production cost price when exported, that is, the price varies from place of origin to the place where it is sent for sale. In economics it is called Dumping, which is an English term from the words To Dump that means to download or sell, being used only in the context of international trade laws, that is, the company sets a lower price for export goods that of the production in a proper cost, in this way said company exports at a lower price, removing any competition from the market, whether local, national or international.

It is a legal action, but negative for many and beneficial for others, where consumers, according to them, win. Dumping is considered a discrimination that in some cases is done sporadically, since it is a viable recommendation as a seasonal promotion of price, this is called sales of being a profit and benefit to the local consumer as well as to the exporting country; For many it is a disloyalty of competition that those who cannot do this leave without selling, it is a predatory action for some only in order to remove any possible competition from the market, selling the product to the cheaper domestic market, it is a strategy of marketenjoying immediate profits, at the beginning they have considerable losses but they position themselves in the market that at the end of a time increase the price again and more than normal, monopolizing their profits at a very high percentage, this practice for many becomes a Persistent strategy for many, they lower price and maximize their profits in windfall profits by rising prices again.