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Which of the following is FALSE about a​ Webb-Pomerene association?

a) It allows American companies to collaborate for exporting purposes.
b) It exempts member companies from certain antitrust laws.
c) Member companies can fix prices collectively under this association.
d) It is primarily focused on domestic trade regulations.

1 Answer

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Final answer:

The false statement about a Webb-Pomerene association is that it is primarily focused on domestic trade regulations, as it rather allows American companies to collaborate for exporting purposes and exempts them from certain antitrust laws for international trade.

Step-by-step explanation:

The statement that is FALSE about a Webb-Pomerene association is d) It is primarily focused on domestic trade regulations. Webb-Pomerene associations allow American companies to work together specifically for international exporting purposes, rather than focusing on domestic trade. This type of association enables competing firms within the same industry to collaborate on international marketing strategies and share in the profits from such activities. Member companies in a Webb-Pomerene association typically can engage in cooperative efforts such as joint marketing or shared distribution channels, which can be more efficient and cost-effective compared to going it alone.

Several competing corporations might join together in an association for a variety of reasons, including the fact that there is often strength in numbers (a), they share common issues that may affect an entire industry (b), and they can all benefit from supportive governmental policies (c). In summary, the reasons include all the above options.

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