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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.
If the foreign producer's export price is lower than the normal price and the investigating body proves a causal link between the alleged dumping and the injury suffered by the domestic industry, it comes to a conclusion that the foreign producer is dumping its products. standard technical definition of dumping is the act of charging a lower price for the like goods in a foreign market than one charges for the same good in a domestic market for consumption in the home market of the exporter.