What does the term 'dumping' refer to in international trade?

The term 'dumping' in international trade specifically refers to the practice of selling goods in another country at prices significantly lower than their normal market value. This can occur when a manufacturer decides to offload excess inventory in international markets by setting prices below the cost of production or below the prices charged in the exporting country.

This practice can be detrimental to domestic industries in the importing country, as it can undercut local businesses that cannot compete with such low prices, potentially leading to monopolistic situations or driving local producers out of the market. While the other options touch on various aspects of international trade, they do not accurately define 'dumping.' For example, overproduction of local goods, mass exporting without permits, and high tariffs imposed by exporting countries are different concepts not tied to the definition of dumping. Thus, identifying 'dumping' correctly as the act of selling below market prices is crucial in understanding the competitive dynamics within international trade.