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

question 28

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:

Hedonistic Principle

A philosophical concept suggesting that actions are motivated by the pursuit of pleasure and the avoidance of pain.

Political Might Principle

The concept that political power and influence can significantly impact decision-making processes and outcomes within organizations and societies.

Self-Serving Ethical Principles

Moral rules or guidelines that individuals adopt, primarily to benefit themselves, often at the expense of others.

Distribution Of Power

The way power is allocated or spread among various parties or individuals within an organization, society, or group, affecting how decisions are made.