Dumping occurs when a manufacturer lowers the price of a good entering a foreign market below what it charges domestic customers.
The identification of trade dumping can be performed simply by comparing the sales price of a good in its market of origin and the price listed in an importing market.
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In economics, "dumping" is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production. The purpose of this act is sometimes to increase market share in a foreign market or to drive out competition.