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In: Operations Management

In your judgement, should a U.S. company operating in a foreign country in which collusive price-fixing...

In your judgement, should a U.S. company operating in a foreign country in which collusive price-fixing is not ilegal obey the U.S. laws against collusion? Explain!

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Expert Solution

According to the US antitrust laws, such acts of an American company calls for a criminal action against the company no matter the country they are operating in or the laws of the country. Therefore, even if it is legal for the country to be corrupt, accept a bribe or be collusive and indulge in price fixing strategies. For a US-based company to be a part of any such process is not treated any differently from the way it would have been treated if they had committed such an act in their own country. The policies of the antitrust laws are absolute and take into account this distinction based on the exact situation that we are facing in this problem. Therefore, the company has both legal as well as an ethical responsibility to have to adhere to the laws set by the US government.

keosha answered 2 years ago
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