What Dumping Is and Why Companies Do It

 
KAL, The Economist’s resident cartoonist and animator, explains what dumping means and why companines do it.

KAL draws: Dumping: Words rather than actions
 

 
Investopedia explains ‘Dumping’
While the World Trade Organization reserves judgment on whether dumping is unfair competition, most nations profess to be against the practice. Dumping is legal under World Trade Organization rules unless the foreign country can reliably show the negative effects of the exporting firm on the domestic producers. In order to counter dumping, most nations use tariffs and quotas to protect their domestic industry from the negative effects of predatory pricing.
 
 
 

Advertisements

About benvitalis

math grad - Interest: Number theory
This entry was posted in Economics, Education and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s