A Foreign Company Partially Owned by the Foreign Government,manufactures Televisions

question 7

Multiple Choice

A foreign company partially owned by the foreign government,manufactures televisions in the foreign country.The cost to the company for the manufacture of the product in the U.S.is the equivalent of $100.Because of excess production,the firm exports 5,000 sets to the United States where they are sold for $120 each.If the nearest rival U.S.-made set sells for $150,the action of the company:

• A) constitutes price-fixing.
• B) violates the WTO anti-dumping provisions.
• C) violates the Sherman Act,because of the involvement of the foreign government in the company.
• D) appears to be legal.

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Definitions:

Compounded Semi-Annually

This refers to the process of calculating interest on the initial principal and the accumulated interest over two periods within a year.

11%

11% typically refers to an interest or annual rate, indicating that 11 percent of the principal amount will be paid in interest over a year.

Nominal Rate

The promoted or declared rate of interest on a loan or investment, excluding the impacts of compounding and inflation.

Compounded Monthly

Interest calculation method involving the addition of interest to the principal sum of a loan or deposit, repeated every month.