Discuss the Legal dispute between two companies in 2 states
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wrebzrzrapl
Business Finance
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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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