In economics, "dumping" can refer to any kind of predatory pricing, and is by most definitions a form of price discrimination. However, the word is now generally used only in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at a what some perceive as an unreasonably low price. The term has a negative connotation, but advocates of free markets see "dumping" as beneficial for consumers and believe that allowing it makes the global economy more efficient. Advocates for workers and laborers however, believe that safeguarding businesses against predatory practices, such as dumping, help alleviate some of the harsher consequences of free trade between economies at different stages of development (see protectionism). Predatory pricing is the practice of a dominant firm selling a product at a loss in order to drive some or all competitors out of the market, or create a barrier to entry into the market for potential new competitors. ... For other pricing strategies and policies see: Pricing Strategies Price discrimination exists when sales of identical goods or services are transacted at different prices from the same provider. ... International trade is the exchange of goods and services across international boundaries or territories. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... Protectionism is the economic policy of protecting a nations manufacturing base from the effects of foreign competition (including Dumping) by means of high tariffs on imported goods, restrictive quotas, and other means of reducing importation. ...

A standard technical definition of dumping is the act of charging a extraordinarily lower price for a good in a foreign market than one charges for the same good in a domestic market. True dumping (by a technical definition) is actually very difficult under free trade, and is also made illegal by the WTO. WTO Logo The World Trade Organization (WTO) is an international, multilateral organization which sets the rules for the global trading system and resolves disputes between its member states, all of whom are signatories to its about 30 agreements. ...

In the United States, domestic firms can file an antidumping suit under the regulations determined by the Department of Commerce and the International Trade Commission. These proceedings operate on a timetable governed by U.S. law. The Department of Commerce has regularly found that dumping occurs in U.S. markets. The United States Department of Commerce is a Cabinet department of the United States government concerned with promoting economic growth. ... The United States International Trade Commission is a nonpartisan, quasi-judicial federal indepedent agency that provides trade expertise to both the legislative and executive branches of government, determines the impact of imports on U.S. industries, and directs actions against certain unfair trade practices, such as patent, trademark, and copyright...

As countries rule domestically on whether native industries are in danger, and whether foreign firms' prices are below the cost of production, and since the foreign cost of production cannot be easily known by domestic courts, the institutional process surrounding the investigation and determinations can be very unpredictable. Members to the World Trade Organization can file complaints against anti-dumping measures. WTO Logo The World Trade Organization (WTO) is an international, multilateral organization which sets the rules for the global trading system and resolves disputes between its member states, all of whom are signatories to its about 30 agreements. ...

See also

• Import tariff
• Safeguard

An import tariff is a schedule of duties imposed by a country on imported goods. ... The Stanley R. Mickelson Safeguard complex in Nekoma, North Dakota, with the separate long-range detection radar located further north at Concrete, North Dakota, was the only operational anti-ballistic missile system ever deployed by the United States. ...

External links

• The Fallacies of Shrimp Protectionism by Don Mathew - says that arguments against "dumping" are flawed
• Protectionism and the Destruction of Prosperity By Murray N. Rothbard - "As far as consumers are concerned, the more "dumping" that takes place, the better."