What term describes the sale of imported goods at prices lower than fair market value?

The term that describes the sale of imported goods at prices lower than fair market value is referred to as "dumping." This practice occurs when a company exports a product to another country at a price that is less than the normal value in the home market or below the cost of production. Dumping is often viewed as an unfair competitive practice because it can undermine local industries and disrupt market dynamics.

The concept is significant in international trade law, where it can lead to investigations and countervailing measures from governments to protect domestic industries from being harmed by such pricing strategies. Anti-dumping measures may include tariffs imposed on the imported goods to raise their price closer to fair market value, thereby helping to maintain a level playing field for local businesses.

Understanding dumping is crucial in the context of global trade, as it encompasses legal and economic implications that protect local markets while ensuring fair trade practices.