Answer:
Dumping exists when sales are made at prices lower than those set by the same company in the market itself, when those prices are different from those of the various export markets or when they are lower than the factory price.
Explanation:
Dumping is considered to exist or that a product is dumped when its export price is lower than the comparable price (normal value) of the same product or of a similar product in the domestic market of the country of origin.
Example: a glove producer in China that sells each pair of its product for USD 0.50 in its country of origin markets that same product at a price of USD 0.45 when exported.
Dumping is a fairly immoral practice. If a company dumped, not only will it be harmed economically, but it will also affect others. Dumping means that companies in the same market cannot compete in terms of price and quality, which in the long term causes several companies to break.
The anti-dumping legislation is a clear example of business ethics. Countries, realizing that accepting dumping harms the country of origin and destination have taken steps to stop this unfair practice. Business ethics is very important to understand the benefits and risks, as it helps us grow and make better decisions.
