Final answer:
Dumping is the sale of an imported product at prices lower than those in the domestic market of origin, with the intent to undermine local competitors. Anti-dumping laws impose tariffs to counteract this and are regulated by the WTO.
Step-by-step explanation:
The practice of selling an imported product at a price lower than that normally charged in a domestic market or country of origin is known as dumping. This strategy involves foreign firms offering goods at prices below their cost of production, sometimes as a short-term tactic to eliminate domestic competition, a scenario that can be referred to as predatory pricing. Anti-dumping laws are designed to combat this by imposing tariffs to increase the price of these imports so that they more accurately reflect the cost of production. The World Trade Organization (WTO) oversees anti-dumping disputes and allows countries to file complaints when they believe they are the target of dumped goods.