Undervaluing goods before importing them into a country. Dumping is lowering an exporter's sales price to gain market share. A nation's businesses lower the sales price of its exports to gain market share by flooding the target export market with dramatically lowered prices. Dumping occurs when a country's businesses lower the sales price of their exports to gain market share. It often successfully puts out competitive business firms in that nation by flooding the target export market with drastically lowered prices.How does it work?
By artificially depressing prices in a country, dumping works to eliminate foreign competition. Markets are often seen as being flooded with products priced so cheaply that competitors can't compete. Until the competition is destroyed and prices return to normal levels, the country that is dumping the products may assist its businesses with subsidies.
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