Final answer:
Dumping refers to the practice of selling merchandise in export markets below production costs to undercut domestic competition, a strategy that can lead to predatory pricing. Anti-dumping laws exist to prevent these practices by blocking such imports or imposing tariffs.
Step-by-step explanation:
The sale of merchandise in export markets at unfair prices is known as dumping. This is often a part of a long-term strategy where foreign firms sell goods at prices below the cost of production to drive out domestic competition. Once local competitors are out of the market, these firms may raise their prices in what is known as predatory pricing. Such actions lead to the implementation of anti-dumping laws, which aim to protect domestic industries by blocking imports sold below the cost of production and imposing tariffs to increase the price of these imports to reflect their cost of production.