A Foreign Company, Partially Owned by That Foreign Government, Manufactures

question 65

Multiple Choice

A foreign company, partially owned by that foreign government, manufactures televisions in the foreign country. The cost to the company for the manufacture of the product is the equivalent of $60 in the U.S. Because of excess production, the firm exports 50,000 sets to the United States where they are sold for $75 each. If the nearest rival U.S.-made set sells for $85, the action of the foreign company:

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

Understand the enhanced security and certainty of payment that accompanies the status of a holder in due course.

Understand the fundamental principles of service marketing strategies.

Recognize the importance of pricing strategies in service marketing.

Comprehend the crucial role of place or distribution in service marketing due to the inseparability of services.

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Definitions:

Drawer

The party in a financial transaction who writes and signs a check or draft directing a bank to pay the check’s amount to someone else.

Negotiable Instrument

A negotiable instrument is a signed document promising to pay the bearer or assigned holder a specific sum of money, such as checks, promissory notes, and drafts.

Payee

The person or entity to whom a payment is directed or made, typically referred to in financial transactions.

Commercial Paper

Unsecured promissory notes with a fixed maturity of usually less than 270 days, used extensively in the financing of business operations.