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.

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Definitions:

Perception

The method wherein people arrange and understand their sensory experiences to assign significance to the world around them.

Perceptual Constancy

Perceptual constancy refers to the psychological phenomenon whereby people perceive objects as maintaining stable properties (size, brightness, color) despite changes in perspective, distance, or lighting.

Monocular Cues

Visual information that allows for the perception of depth and three-dimensional space using one eye.

Binocular Cues

Depth cues, such as retinal disparity, that depend on the use of two eyes.