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:

Question

Quizplus · Accepted Answer

The action described does not constitute price-fixing, violate the WTO anti-dumping provisions, or the Sherman Act simply based on the information given. Selling a product at a lower price than the competition, even if it is below the cost of production in the U.S., does not automatically imply illegal activity without further evidence of intent to monopolize, predatory pricing, or an unfair trade practice that is prohibited by specific international agreements or laws.

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