Final answer:
The sale of merchandise at unfairly low prices in export markets is known as dumping, which is addressed through anti-dumping laws and measures enforced by the WTO and individual nations.
Step-by-step explanation:
The sale of merchandise in export markets at unfair prices is known as dumping. This practice involves foreign firms selling goods below their cost of production as a strategy, which can lead to predatory pricing where domestic competition is eliminated and prices are then raised. Nations can respond to suspected dumping by filing a complaint with the World Trade Organization (WTO), which can result in anti-dumping laws and tariffs. Anti-dumping measures are designed to protect domestic industries from the harmful effects of such practices.
Anti-dumping complaints have been on the rise with various products being subjected to these orders. In recent years, several countries, including the United States, have enforced anti-dumping tariffs on products ranging from steel pipe fittings to coated paper. These measures are typically more prevalent during economic recessions as domestic industries seek protection against low-priced imports.