Posted in Finance, Accounting and Economics Terms, Total Reads: 938
Dumping is the process of selling a product in a foreign at a lower price than the price that is charged in the home market or at price lower than the most of producing it. The price is said to be lower than the fair price.
It is legal to follow dumping until it can be proved that the low prices are affecting the producers of the home country. In such a case, an anti-dumping duty cost can be applied on the company following the dumping policy. This duty would be the difference between the market price in exporter’s country and free on board price in importer’s country.