Definition Of Dumping Politics And Examples, Including Indonesia's Experience

Illustration of import export (unsplash)

YOGYAKARTA - In KBBI, dumping means a system of selling goods in large quantities on foreign markets at very low prices (the aim is that the domestic purchase price is not reduced so that it can dominate the foreign market and can control the price again). To better understand it, berikit is the definition of dumping politics and its examples.

Dumping policy is a policy implemented by selling domestic products abroad at a lower price than domestically. The goal is to dominate markets abroad and produce old products that may not be advanced.

Basically, dumping politics is considered unfair because it destroys the market and harms competing producers in the importing country. This policy is a form of price discrimination policy in order to secure a country's products abroad.

Types of dumping politics 1. Sporadic dumping

Dumping is sporadic in nature, ie dumping is carried out in a short period of time. The purpose of sporadic dumping is to prevent the accumulation of goods on the domestic market due to excess production at the factory.

2. Persistent dumping

This is a dumping practice that is carried out continuously and permanently. This is also known as international price discrimination.

This type of dumping can take a long time because there are market differences between importing and exporting countries.

3. Predatory dumping

This dumping policy aims to paralyze its competitors. After a competitor falls, the dumping actor will increase the price of his product as desired. That way, the market can be monopolized and the players can be limited in the long run even though they previously had losses.

Some examples of dumping politics

· Sales of Xiaomi brand phones which are cheaper in Indonesia than the selling price of Xiaomi in China - the country of origin.

· Sales of carpets by China in Indonesia at a lower price than the price of Indonesian products.

· The sale of silk by China in India is cheap, even though India is a producer of silk.

· The dominance of Turkish flour in Indonesia in 2009 because the price of flour from Turkey is cheaper than domestic flour.

· Chinese sales of tires in the United States (US) at a lower price than the market price in the US.

· Sales of motorcycles, automobiles and electronic products by Japan at high prices domestically, but very cheaply abroad.

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