Abstract:
Continuous economic development may lead to situations in which national industries produce more than the onsumption ability of the local market. These industries tend, therefore, to export excess production, resorting to aggressive practices to take over the market. One of these strategies is to throw this products surplus on external markets at a price that overs only the marginal cost, while fixed costs are covered from the sales on the internal market. This way, the export price can be smaller than the total production costs or than the sale cost on the internal market. Such a sale at small prices mayplace the producers of similar products in the importing state in a disadvantageous position. This commercial practice is called dumping and is usually the result of industrial overproduction.
