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The controversies surrounding dumping -Why is dumping such a controversial issue? Discuss the key argumenrs surroundinf...

The controversies surrounding dumping

-Why is dumping such a controversial issue? Discuss the key argumenrs surroundinf this non-tariff barrier!
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Dumping is when a company charges lower price than the price in the home country in order to create a market in the new country. It is a type of price discrimination as the foreign country is flooded with the cheaper goods, making it hard for the domestic producer of the foreign country to compete. sometimes the exporting company is given subsidy by its government to make up for the losses of charging lower prices. And therefore the importing country puts an import restrictions on the good either in the form of higher taxes or quantity restrictions. All in all dumping creates inefficiency in the market.

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