DUMPING MARGIN Meaning and
Definition
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Dumping margin refers to the calculated amount by which the export price of a product from a country exceeds its normal value or fair market value in the importing country. It signifies the extent to which a product is being sold on the foreign market at a price lower than its value in the home market. Dumping occurs when a company or country exports a product to another country at a price lower than its production cost or lower than the price it normally charges in its domestic market.
The dumping margin is typically calculated by comparing the export price of the product to a benchmark price, such as the normal value or the cost of production, in the importing country. If the export price is found to be below this threshold, a dumping margin is established to measure the extent of the price difference. The dumping margin is usually expressed as a percentage and helps determine the amount of anti-dumping duties that may be imposed on the imported product to level the playing field for domestic producers.
Dumping margins are an important concept in international trade as they can lead to unfair competition and harm domestic industries in importing countries. Anti-dumping measures, such as the imposition of tariffs or quotas, are often taken by governments to protect their industries from the negative impacts of dumping. By imposing anti-dumping duties based on the calculated dumping margin, countries aim to counteract the effects of unfair pricing practices and ensure fair competition in the international marketplace.
Common Misspellings for DUMPING MARGIN
- sumping margin
- xumping margin
- cumping margin
- fumping margin
- rumping margin
- eumping margin
- dymping margin
- dhmping margin
- djmping margin
- dimping margin
- d8mping margin
- d7mping margin
- dunping margin
- dukping margin
- dujping margin
- dumoing margin
- dumling margin
- dum0ing margin
- dumpung margin
- dumpjng margin
Etymology of DUMPING MARGIN
The etymology of the word "dumping margin" can be understood by examining the origins of its two constituent words, "dumping" and "margin".
1. Dumping: The term "dumping" dates back to the 19th century and is derived from the verb "to dump". In this context, "dumping" refers to a practice of exporting goods to another country at a significantly lower price than what is charged in the domestic market or the cost of production. The verb "to dump" itself comes from the Middle Dutch word "dompen" and the Old Norse word "dumpa", both of which mean "to fall suddenly".
2. Margin: The word "margin" stems from the Latin word "margo", which means "border" or "edge".
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