Which of the following best describes 'dumping' in international trade?

The best description of 'dumping' in international trade is the practice of selling goods at a price lower than their market value, often at a loss, in order to gain a significant market share in a foreign market. This strategy is employed by companies to undercut local competitors and establish a presence in new markets. By selling at a reduced price, companies aim to attract customers who might be deterred by higher local prices, thereby increasing their sales volume and brand awareness.

This approach can lead to controversial results, as it may result in unfair competition and lead to local businesses being unable to compete effectively. Governments in various countries may impose anti-dumping duties or tariffs to protect domestic industries from such practices.

The other choices do not accurately characterize dumping. For instance, exporting goods without prior agreements refers to trade practices that may not follow international trade laws or standards but do not capture the essence of dumping. Utilizing barter instead of money relates to a method of exchange, not pricing strategies in international trade. Setting prices above the domestic market is contrary to the concept of dumping, which involves selling below domestic prices.