Is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country?

	Definition: Dumping refers to the practice by firms of selling products abroad at below costs or significantly below prices in the home market. The former implies predatory pricing; the latter, price discrimination. Context: Dumping of both types is viewed by many governments as a form of international predation, the effect of which may be to disrupt the domestic market of foreign competitors. Economists argue, however, that price discriminatory dumping, where goods are not sold below their incremental costs of production, benefits consumers of the importing countries and harms only less efficient producers. Under the General Agreement on Tariffs and Trade (GATT) rules, dumping is discouraged and firms may apply to their respective government to impose tariffs and other measures to obtain competitive relief. Inhaltsverzeichnis Show What is the practice of selling products in a foreign market for less than in its home country quizlet? When a country sells its products in a foreign country at a cheaper price than usual and sometimes even at a loss it is dumping products? What is the name given to the sale of a product for a price below its cost of production? Is the selling of products to another country? As in the case of predatory pricing or selling below costs, arguments have been advanced questioning the economic feasibility of dumping at prices below costs over extended periods of time. Source Publication: Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993. Statistical Theme: Financial statistics Created on Thursday, January 3, 2002 Last updated on Tuesday, March 4, 2003

absolute advantageThe situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide the product.balance of paymentsA summary of a country’s international financial transactions showing the difference between the country’s total payments to and its total receipts from other countries.balance of tradeThe difference between the value of a country’s exports and the value of its imports during a specific time.buy-national regulationsGovernment rules that give special privileges to domestic manufacturers and retailers.contract manufacturingThe practice in which a foreign firm manufactures private-label goods under a domestic firm’s brand name.countertradeA form of international trade in which part or all of the payment for goods or services is in the form of other goods and services.devaluationA lowering of the value of a nation’s currency relative to other currencies.direct foreign investmentActive ownership of a foreign company or of manufacturing or marketing facilities in a foreign country.dumpingThe practice of charging a lower price for a product in foreign markets than in the firm’s home market.embargoA total ban on imports or exports of a product.European integrationThe delegation of limited sovereignty by European Union member states to the EU so that common laws and policies can be created at the European level.European UnionTrade agreement among 28 European nations.exchange controlsLaws that require a company earning foreign exchange (foreign currency) from its exports to sell the foreign exchange to a control agency, such as a central bank.exportingThe practice of selling domestically produced goods to buyers in another country.exportsGoods and services produced in one country and sold to other countries.floating exchange ratesA system in which prices of currencies move up and down based upon the demand for and supply of the various currencies.free tradeThe policy of permitting the people and businesses of a country to buy and sell where they please without restrictions.free-trade zoneAn area where the nations allow free, or almost free, trade among each other while imposing tariffs on goods of nations outside the zone.G20Informal group that brings together 19 countries and the European Union—the 20 leading economies in the world.global visionThe ability to recognize and react to international business opportunities, be aware of threats from foreign competition, and effectively use international distribution networks to obtain raw materials and move finished products to customers.import quotaA limit on the quantity of a certain good that can be imported.importsGoods and services that are bought from other countries.infrastructureThe basic institutions and public facilities upon which an economy’s development depends.International Monetary Fund (IMF)An international organization, founded in 1945, that promotes trade, makes short-term loans to member nations, and acts as a lender of last resort for troubled nations.joint ventureAn agreement in which a domestic firm buys part of a foreign firm or joins with a foreign firm to create a new entity.licensingThe legal process whereby a firm agrees to allow another firm to use a manufacturing process, trademark, patent, trade secret, or other proprietary knowledge in exchange for the payment of a royalty.MercosurTrade agreement between Peru, Brazil, Argentina, Uruguay, and Paraguay.multinational corporationsCorporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located. nationalismA sense of national consciousness that boosts the culture and interests of one country over those of all other countries.North American Free Trade Agreement (NAFTA)A 1993 agreement creating a free-trade zone including Canada, Mexico, and the United States.outsourcingSending work functions to another country, resulting in domestic workers losing their jobs.preferential tariffA tariff that is lower for some nations than for others.principle of comparative advantageThe concept that each country should specialize in the products that it can produce most readily and cheaply and trade those products for those that other countries can produce more readily and cheaply.protectionismThe policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas.protective tariffsTariffs that are imposed in order to make imports less attractive to buyers than domestic products are. tariffA tax imposed on imported goods.trade deficitAn unfavorable balance of trade that occurs when a country imports more than it exports.trade surplusA favorable balance of trade that occurs when a country exports more than it imports. Uruguay RoundA 1994 agreement originally signed by 117 nations to lower trade barriers worldwide.World BankAn international bank that offers low-interest loans, as well as advice and information, to developing nations.World Trade Organization (WTO)An organization established by the Uruguay Round in 1994 to oversee international trade, reduce trade barriers, and resolve disputes among member nations.

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What is the practice of selling products in a foreign market for less than in its home country quizlet?

When a country sells its products in a foreign country at a cheaper price than usual and sometimes even at a loss it is dumping products?

What is the name given to the sale of a product for a price below its cost of production?

Is the selling of products to another country?