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.