Distortion of international trade by dumping


International trade may be distorted when an enterprise effectively reduces the foreign price of its product below that of the domestic price, where any such difference is not due to actual differences in the cost of selling, production, or transportation. The price reduction may be disguised by quality differentials, spurious quantity discounts, or favourable credit terms. Governments may support such forms of export through special export subsidies, tax rebates, or other special concessions.

Related UN Sustainable Development Goals:
GOAL 10: Reduced Inequality
Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST