Hoffman-LaRoche Ltd.and BASF AG,two international pharmaceutical companies,were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the U.S.This is an example of how __________ forces affect the marketing environment.

Question

Quizplus · Accepted Answer

The case of Hoffman-LaRoche Ltd. and BASF AG shows how regulatory forces affect the marketing environment. The companies were fined for violating antitrust laws by colluding to fix prices of vitamins, which is illegal and punishable by law. This demonstrates how government regulations and laws can heavily impact market dynamics and the behavior of players within it.