What is Dumping?

What is Dumping?

What is Dumping? Jonathan Poland

Dumping refers to the act of selling a product or service in a foreign market at a lower price than the established “normal price.” This practice is often used by businesses to gain a monopoly or to drive a competitive threat out of business. By selling their products or services at a lower price, businesses can undercut the prices of their competitors, making it difficult for them to compete and potentially leading to their exit from the market. Dumping can have negative consequences for domestic businesses and consumers, as it can lead to reduced competition and lower prices for domestic products and services. It can also lead to market disruption and potentially harm the domestic economy. As a result, many countries have laws in place to prevent or regulate dumping.

Normal Price

A normal price can refer to a typical “fair value” in a nation over a period of time. The prices charged by a firm in their domestic market and other international markets are also considerations.

Government Support

Dumping isn’t necessarily barred by trade agreements but it is viewed negatively. In many cases, a government or trade organization will take action against dumping if it is damaging the industry of a nation. Dumping is particularly damaging if it is supported by a government with payments such as subsidies.


A firm sells widgets for $2 in their own market and $1.80 in most international markets. Their strongest competition is in Germany where they sell the widgets for $0.30. It is likely this price is aimed at damaging competitors in Germany as opposed to being viewed as a fair value for the product.

Learn More…

Business Services Jonathan Poland

Business Services

Business services are a type of service that is primarily provided to…

Scaling 101 Jonathan Poland

Scaling 101

Scaling is the process of increasing the size, scope, or reach of…

Process Capital Jonathan Poland

Process Capital

Process Capital is a term that refers to the financial resources that…

Competitor Analysis Jonathan Poland

Competitor Analysis

Competitor analysis is the process of gathering and analyzing information about competitors…

Mass Marketing Jonathan Poland

Mass Marketing

Mass marketing, also known as mass media marketing, refers to a marketing…

Window of Opportunity Jonathan Poland

Window of Opportunity

The window of opportunity is a concept that refers to a limited…

Soft Sales vs Hard Sale Jonathan Poland

Soft Sales vs Hard Sale

A soft sell is an approach to sales and promotion that emphasizes…

Marketing Message Jonathan Poland

Marketing Message

A marketing message refers to any media or communication that is intended…

Personal Selling Jonathan Poland

Personal Selling

Personal selling is a type of sales approach that involves face-to-face interaction…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Lobbying Jonathan Poland


Vertical integration is when a single company owns multiple levels or all of its supply chain.

Marketing Experimentation Jonathan Poland

Marketing Experimentation

Marketing experimentation involves making changes to various aspects of a company’s marketing…

Fair Competition Jonathan Poland

Fair Competition

Fair competition refers to competition between businesses that is open and equitable,…

Operations 101 Jonathan Poland

Operations 101

Business operations refer to the processes and activities that are involved in…

Sales Pipeline Jonathan Poland

Sales Pipeline

A sales pipeline is a visual representation of the sales process, from…

Rationalism vs Empiricism Jonathan Poland

Rationalism vs Empiricism

Rationalism and empiricism are two philosophical approaches to understanding the world and…

What is a Business Case? Jonathan Poland

What is a Business Case?

A business case is a document that presents a proposal for a…

What is Supply? Jonathan Poland

What is Supply?

Supply refers to the amount of a product or service that is…

Psychographics Jonathan Poland


Psychographics is the study of personality, values, attitudes, interests, and lifestyles. It…