Dumping means that large enterprises in capitalist countries sell dumped goods in foreign markets at prices lower than the domestic market or even lower than the production cost of goods while controlling the domestic market, so as to attack competitors and occupy the market.

Commodity dumping is usually carried out by large private enterprises, but with the development of state monopoly capitalism, some countries have set up specialized agencies to directly dump commodities.

Classification:

1. Sporadic dumping: selling "surplus products" abroad because the peak sales season has passed or the company has switched to other businesses.

2. Predatory dumping: dumping in foreign markets at a price lower than the market price or even the cost price, monopolizing the market, and then raising the price.

3. Long-term stabilization: The product is sold at a price lower than domestic price, but the export price is higher than the production cost, and economies of scale are adopted to expand production and reduce costs.

Foreign exchange dumping refers to the act of using domestic currency to depreciate, dump goods and compete for the market. This is because after the devaluation of the domestic currency, the price of export commodities denominated in foreign currency has decreased, which has improved the competitiveness of domestic commodities in the international market and is conducive to expanding exports; However, due to the devaluation of the domestic currency, the price of imported goods has risen, which has weakened the competitiveness of imported goods and restricted imports. Foreign exchange dumping needs certain conditions, mainly because the devaluation of the domestic currency is faster than that of the domestic currency, and the other party does not retaliate.

Hope to adopt