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:

Mortality

The state of being subject to death or the incidence of death within a population.

Natality

The birth rate, or the number of births within a population over a certain period of time, often expressed per 1000 individuals.

Population Crash

A sudden, sharp decrease in the size of a population due to environmental factors.

Carrying Capacity

The maximum population size of a biological species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available.