What is it called when goods are sold abroad at a price below the domestic market price?

When goods are sold abroad at a price below the domestic market price, this practice is termed "dumping." Dumping occurs when a company exports a product to another country at a price that is lower than the price it normally charges in its home market. This practice can be used to gain market share in the foreign market by undercutting local competitors. It can also result in significant trade tensions, as countries may impose anti-dumping duties in response to protect their local industries from unfair competition.

Understanding dumping is essential in international trade, as it highlights the complexities and regulations that are in place to ensure fair trade practices. This concept connects directly to broader topics such as trade policy, international economics, and market dynamics between countries.