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It is illegal in some countries to dump certain products into them, because they want to protect their own industries from such competition. Terms related to Dumping: 1  Transition Economics. 2  Austrian Economics. 3  Bureaucracy. 4  The Economic Effect of Tariffs. 5  The Softwood Lumber Dispute.
In countries that practice dumping, the standard of living of the toiling masses is lowered as a result of the rise in domestic prices and taxes. In countries that are the object of dumping, the development of national industries becomes more difficult and unemployment increases.umping is usually done to drive competitors off the market and secure a monopoly, or to hinder foreign competition. To counterbalance international dumping, nations often resort to flexible tariffs. In international trade, acute competition from foreign producers often leads to charges of dumping.