Which of the following is an instance of non-conventional dumping?

Correct option is C

Dumping refers to the practice of exporting a product to a foreign market at a price lower than its normal value (usually the domestic price) to gain market share or eliminate competition. Most forms of dumping are considered conventional, but reverse dumping is considered non-conventional because it involves pricing strategies opposite to traditional dumping practices.
1. Sporadic Dumping (Option a):
· Occurs when a company occasionally sells goods in a foreign market at a lower price than the domestic market, typically to offload excess inventory.
· This is a conventional form of dumping.
2. Predatory Dumping (Option b):
· Involves selling goods at an extremely low price in a foreign market to eliminate competition, with the intent to raise prices later and gain monopoly power.
· This is another conventional form of dumping.
3. Reverse Dumping (Option c):
· Reverse dumping is non-conventional because the product is sold at a higher price in the importing country than in the exporter’s domestic market.
· This typically happens when demand is inelastic in the importing country, allowing the exporter to charge higher prices.
· For instance, a product with a luxury appeal or brand recognition in the foreign market might command higher prices abroad, even if it is cheaper in the home country.
4. Persistent Dumping (Option d):
· Involves continuously selling goods at a lower price in a foreign market to maintain market share.
· This is another conventional form of dumping.