Dumping (GRAPH)
Dumping in economics can be defined as the sale of a product by a foreign company for less than its production cost in a domestic market. Here, a foreign company that wishes to create competition or strengthen its competitive position in a domestic market deliberately sells its product below the domestic market price or below the production cost. Domestic consumers, wanting to buy more of a product when the price goes down, will then buy more of the product sold by the foreign company.
When it comes to dumping in economics, the reduction in the price of the product in a domestic market is often considered "trickery." This is because the producers in the domestic market often believe that once the act gains the foreign producer's popularity and drives some domestic producers out of business, prices will rise to where they should actually be or even higher. Below is an example that simplifies the concept of dumping.
Dumping(GRAPH). Corporate Finance Institute https://corporatefinanceinstitute.com/resources/economics/dumping/