EFFECTS OF DUMPING ON DOMESTIC MARKET

DumpinDumping g

“It may be defined as that type of price discrimination where the

manufacturer sells his product at a lower price in a foreign market

than in the home market”.

VOLUME VOLUME EFFECT EFFECT

PRICE PRICE EFFECT EFFECT

SIGNIFICANT

INCREASEABSOLUT

ERELATIVE

DEPRESSION

UNDERCUTTINGSUPRESSI

ON

INJURY- EVALUATION OF ECONOMIC INJURY- EVALUATION OF ECONOMIC INDICATORSINDICATORS

ACTUAL / POTENTIAL DECLINE INACTUAL / POTENTIAL DECLINE IN

SalesSales OutputOutput ProfitsProfits Market ShareMarket Share ProductivityProductivity Return on InvestmentReturn on Investment Capacity Utilization etc.Capacity Utilization etc. EmploymentEmployment Inventors/StocksInventors/Stocks Ability to raise capitalAbility to raise capital

Govt bans import of Chinese toys for six months

from the times, 17 september,2009.

Thank you…….