Occasional sale of a commodity at a lower price abroad in order to unload an unforeseen and temporary surplus of the commodity without reducing domestic prices is called:

Correct option is D

Dumping is a type of price discrimination where a product is sold in a foreign market at a price lower than its domestic market price. There are different types of dumping:

1. Persistent Dumping (Option a - Incorrect)

   • This occurs when a firm continuously sells a product at a lower price in foreign markets than in the domestic market to maintain a long-term competitive advantage.
   • This is not occasional, so this option is incorrect.

2. Predatory Dumping (Option b - Incorrect)

   • This happens when firms deliberately sell products at extremely low prices abroad to drive out competitors and create a monopoly.
   • The goal is to eliminate foreign competitors and later raise prices once they exit the market.
   • This does not match the condition of a temporary surplus, so this option is incorrect.

3. Export Subsidies (Option c - Incorrect)

   • Export subsidies are government financial aids provided to domestic firms to make exports cheaper.
   • This does not involve selling at lower prices due to temporary surplus, so this option is incorrect.

4. Sporadic Dumping (Option d - Correct)

   • Occurs when firms unexpectedly accumulate excess stock and sell the surplus in foreign markets at lower prices to prevent price reduction in the domestic market.
   • This is temporary and occasional, which matches the given condition.

Thus, sporadic dumping is the correct answer.

Information Booster:

• WTO (World Trade Organization) allows countries to impose anti-dumping duties if dumping harms domestic industries.
• Countries use tariffs and quotas to counteract dumping.
• China, the USA, and European nations have frequently been involved in anti-dumping cases.
• Example: If a company in India produces excess steel, it might export it to the USA at lower prices while keeping Indian prices stable.

Additional Knowledge:

• Persistent Dumping: Long-term practice to maintain market control.
• Predatory Dumping: Selling below cost to eliminate competition.
• Export Subsidies: Government support to promote exports, not price discrimination.