I should mention: when you're ready to import your dump file, you do it with just the "mysql" command:
mysql db_name_to_import_into < /usr/local/dump_file.sql -u username -p
You'll be prompted for your password. It may be necessary for you to create the database name before you execute the above command. Otherwise, I believe MySQL gives you an error message about the database not being found or not existing. Same thing.
To create a database, execute the following from within the MySQL monitor
create database db_name;
Remember, that's done from within the MySQL monitor (or equivalent if you're using a third party tool like phpmyadmin).