Dumping refers to the practice of selling goods at a price lower than their cost or lower than the price charged in the domestic market. This is done to eliminate surplus, undermine foreign competition, or dispose of goods unacceptable for the domestic market.
An essential industry is one deemed by society to be critical for political or economic reasons and must be localized within the economy irrespective of comparative advantages, often insulated from external trade. Examples include the defense industry.
Pre-financing refers to an arrangement where a buyer, often an importer, finances the activities of a supplier by making an advance payment against future delivery. This practice is sometimes employed as a fair trade policy to support farmers in developing nations.
A tariff war is an international trade conflict where nations impose counterbalancing tariff rates in retaliation to each other's tariff policies, aiming to gain trade advantages but often resulting in adverse economic consequences.
A trade agreement is typically a legally binding pact between or among governments designed to foster, regulate, and sometimes restrict various aspects of commerce between the member countries.
The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade, ensuring that trade flows as smoothly, predictably, and freely as possible.
