Under what circumstance would a nation be guilty of illegal dumping in international trade?

A nation would be guilty of illegal dumping when it sells goods, such as cell phones in this scenario, at prices lower than the cost of production. This practice is considered unfair competition because it undermines the local market in the importing country (Country Y) by allowing Country X to undercut prices in a way that local producers cannot sustainably compete. Such actions can lead to significant market distortions, driving domestic companies out of business and harming the overall economy of the importing nation.

This behavior often triggers trade disputes and can lead to investigations and potential tariffs imposed by the receiving nation to protect its local industries. The act of selling below production costs does not reflect typical market dynamics and is generally viewed as an attempt to gain market share unfairly at the expense of local producers.

In contrast, selling consumer electronics at a high price, restricting imports of technology, or setting high tariffs on certain goods may reflect standard market behaviors, trade policies, or economic strategies without constituting illegal dumping. These actions could be part of legitimate business practices or trade negotiations rather than the predatory pricing strategy associated with dumping.