'Hedging' is the term used in Economics to denote a technique for avoiding a risk by making a counteracting transaction. Hedge is 'Hedging' is the term used in Economics to denote a technique for avoiding a risk by making a counteracting transaction. Hedge is an investment that protects one's finances from a risky situation. Hedging is done to minimise the chance that your assets will lose value. Dumping occurs when the manufacturers export a product to another country at a price below the normal price. Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor for a defined period of time. Deflating is a decrease in the general price level of the goods and services.