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

Question 7

Multiple Choice

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:


A) constitutes price-fixing.
B) violates the WTO 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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