Dumping

Literally ‘Dumping’ means to place goods on a market, especially in a foreign market, in large quantities and at a low rete. When a country tries to capture the market of a foreign country, it starts dumping its goods in large quantities and at low prices, sometimes, even below the cost of production. Particularly, when there is a severe competition between countries in the export of goods, a country dumps its goods to promote its sales abroad and to acquire monopoly in foreign markets. After the Second World War Japan dumped the markets of foreign countries by selling its goods at lower prices. China, Taiwan and Hong Kong are doing the same at present.