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Trading Terms

Dumping

Welcome to our lesson on dumping in the world of finance. This term refers to the practice of selling a product in a foreign market at an unfairly low price. This can give a competitive advantage to the seller by undercutting other suppliers. However, it is considered an unfair trade practice by international agreements such as the GATT and World Trade Organisation. To regulate this, national governments may impose anti-dumping duties, which aim to equalize the price difference between the importing and exporting countries.

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