MGT Leadership and Ethics Unit 4 DB First Week

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The Expando Co. in State A receives a wide variety of general subsidies from the State A government (including tax breaks, low interest financing, and technical assistance) that State A offers to all domestic enterprises within its territory.
The Expando Co. in State A receives a wide variety of general subsidies from the State A government (including tax breaks, low interest financing, and technical assistance) that State A offers to all domestic enterprises within its territory.
Expando manufactures wristwatch bands that it recently began to sell in State B. The Flexo Co. in State B manufactures similar watchbands and it has begun to lose some of its market share to Expando. State A and State B are both WTO member states. Flexo would like State B to impose a countervailing duty to offset the subsidies received by Expando from State A, and Flexo has asked the State B Customs Service (which is responsible for imposing such duties) to do so.
After making an investigation, the Customs Service refused to impose any duties. Flexo has appealed to a court.
•Should the court overrule the decision of Customs Service? Explain.
A significant issue with two companies producing and selling similar goods in the same state is the extent of regulatory legislation.
•Discuss the social, political, economic and legal problems that will occur with two companies competing in the same state. What are the implications for community and employee relations?
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