A-Z Popular Blog Pricing Search »
Pricing
Simplicable Guide
A-Z
Search
Popular
Sitemap
Advertisements
Related Guides

What is Dumping?

 , December 01, 2017
Dumping is the practice of selling a product or service in a foreign market lower than an established "normal price." This is typically done to establish a monopoly or put a competitive threat out of business.

Normal Price

A normal price can refer to a typical "fair value" in a nation over a period of time. The prices charged by a firm in their domestic market and other international markets are also considerations.

Government Support

Dumping isn't necessarily barred by trade agreements but it is viewed negatively. In many cases, a government or trade organization will take action against dumping if it is damaging the industry of a nation. Dumping is particularly damaging if it is supported by a government with payments such as subsidies.

Example

A firm sells widgets for $2 in their own market and $1.80 in most international markets. Their strongest competition is in Germany where they sell the widgets for $0.30. It is likely this price is aimed at damaging competitors in Germany as opposed to being viewed as a fair value for the product.
Overview: Dumping
Type
DefinitionThe practice of selling a product or service in a foreign market lower than an established "normal price."
Related Concepts

Pricing

This is the complete list of articles we have written about pricing.
Algorithmic Pricing
Bargaining Power
Benchmark Price
Commoditization
Cost-plus Pricing
Customary Pricing
Decoy Effect
Everyday Low Price
Marginal Utility
Willingness To Pay
Dynamic Pricing
High-Low Pricing
Market Value
Flat Pricing
Loss Leader
Predatory Pricing
Price Discrimination
Snob Effect
Market Price
Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Models
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Price Economics

A list of price economics principles and theories.

Willingness To Pay

A list of factors that influence willingness to pay.

Sticky Prices

Prices that stick to an established range and resist changing economic forces such as inflation.

Commoditization

A definition of commoditization with examples.

Too Cheap To Meter

A definition of too cheap to meter with examples.

Relative Price

The definition of relative price with examples.

Value vs Price

The difference between value and price with examples.

Market Value

The definition of market value with examples.

Competitive Market

A complete overview of competitive markets with examples.

Pricing

The common types of pricing.

Pricing Examples

An overview of common pricing strategies.

Pricing Strategy

An overview of common pricing strategies.

Sales Promotion

The common types of sales promotion.

Price Optimization

The common ways to optimize pricing.

Flat Pricing

A definition of flat pricing with examples.

Revenue Management

The definition of revenue management with examples.

Dynamic Pricing

The common types of dynamic pricing.

Pricing Objectives

The common types of price objective.

Benchmark Price

A definition of benchmark price with examples.

Price Escalation

The two common meanings of the term price escalation.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map