Question

U.S. antitrust laws: a. do not apply to companies based in other countries that are doing business in the United States. b. do not apply to U.S. companies doing business in other countries. c.apply to companies based in other countries that do business in the U.S. d. none of the above

Answer 1

Answer:

The correct answer is c.

Explanation:

Monopolies are considered negative in a free market economy because, through their economic dominance, they distort markets and stifle competition. In order to combat the rise of monopolies, the United States has a series of antitrust laws, which are meant to enhance competition and discourage and penalize monopolistic business practices.

The 1890 Sherman Act, the 1914 Clayton Act and the 1914 Federal Trade Commission Act represent the three main antitrust laws that regulate business practices for national and foreign enterprises that conduct trade in or with the United States. However, the 1982 Foreign Trade Antitrust Improvements Act regulates the international scope of these antitrust laws. Generally speaking, it states that they can't be enforced outside the US, unless the monopolistic practices affect exports from and imports into the US. According to this interpretation, foreign companies that do business in the US can be subject to antitrust laws if their business practices are considered monopolistic under them.

Answer 2

Answer:

C. Apply to companies based in other countries that do business in the US.

Explanation:

Comapnies engaging in commercial activity to the US, are now subject to these laws, since in 2012 a ruling in the case Minn-Chem vrs Agrium determined that the FTAIA can affect non-based US companies.