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"Dumping"

By Kimberly Amadeo, About.com

Definition: Dumping is when a country lowers the sales price of an export below its actual cost to produce. The country is willing to take a loss on the product to gain unfair market share in that industry in the hopes of putting the local producers out of business. Generally a country will have to give the exporting businesses a huge subsidy to allow them to sell the export at below cost.

Examples: China has been suspected of dumping shrimp into the U.S. market to dominate this industry.

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