Subsidizing Failure's Term of the Week

Sunday, April 26, 2009


Economic Dumping


"The act of selling a good in a foreign market at a price that is either below the cost of production of the good or below the price at which the good sells for in the home market. Dumping is illegal."

An example of this occurred in Japan when they sold televisions in the 1980's at a very low price in turn putting American television companies out of business.


A more recent example is over Chinese steel:


China Steel

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