What is predatory dumping?

Answer 1

Predatory dumping refers to the practice where a company sells its products in a foreign market at prices significantly lower than in its domestic market, often below cost. This strategy aims to eliminate competition by undercutting local businesses, ultimately allowing the company to establish a dominant market position. Once competitors are driven out, the company may raise prices to recoup losses. Such practices can lead to trade disputes and are often subject to anti-dumping laws.