Analyzing Anti-Competitive Practices in International Business

This report provides an analysis of several international business cases, focusing on anti-competitive practices and their consequences. The report begins with a case study of Starkist, examining its price-fixing activities, the relationship between raw and canned tuna prices, the impact of mergers and acquisitions on competition, and the effects of collusion on US consumers. The report then explores inquiries into money transfer costs from Australia, detailing the role of banks and online money transfer companies. Additionally, it examines the European Union's policies and tools for combating anti-competitive behaviors, specifically focusing on the EU's allegations against Google regarding its search and shopping services, and Google's defenses. The report also touches on the impact of oil price fluctuations on various countries and discusses product life cycle stages and strategies employed by Apple to extend the life cycles of its products like Macs, iPhones, iPads, and iWatches. The report highlights the various aspects of business management and the importance of following the rules and regulations set by the government.

International Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
Q1)...................................................................................................................................................1
1. Describe the facts of this case in relation to what the companies involved were doing to
implement the anti-competitive scheme?....................................................................................1
2. Explain your expectation with respect to what the normal relationship should be between
the price of raw tuna and the price of canned tuna?....................................................................1
3. Describe how Merger & Acquisition activity among suppliers in this market impacted
competition and played a role in the price-fixing activities being exposed................................1
4. Describe how the collusion and price-fixing in this case impacted consumers in the US
market..........................................................................................................................................2
Q2). .................................................................................................................................................2
5. Describe how the cost of sending money overseas from Australia in relation to other G20
countries played a role in this inquiry being commenced?.........................................................2
6. Identify the four largest banks in Australia and the three largest online money transfer
companies and describe how complaints about these firms played a role in the inquiry being
commenced.................................................................................................................................3
7). Describe generally how the inquiry will be conducted with specific reference to the range
of issues to be addressed?...........................................................................................................3
Q3 ....................................................................................................................................................3
8. Describe the reasons why the EU has adopted these policies and tools available to fight anti
competitive behaviours?..............................................................................................................3
Q4 ....................................................................................................................................................4
9. Describes the EU's allegations against Google in this case and explain why these activities
would have a negative effect on competition and consumer if true? .........................................4
10. Describe Google's defences and explanations in responses to the EU's case?......................4
CONCLUSION................................................................................................................................5
REFERENCS ..................................................................................................................................6

INTRODUCTION
In today era, the scope of internation business in increasing at a very high speed. As
almost every company wants to exchange their goods and services in multiple countries. In this
report, the case study of Starkist is discussed, that company is found guilty to a charge of price
fixing. Report shows the anti-competitive scheme for company, relationship between raw tuna
and canned tuna. Merger and acquisition help to exposed price fixing activities within company.
Q1)
1.
Answer. In the above case, it has observed that Starkist is liable to pay a plenty of $100
million as the company is found guilty in case of price-fixing. Therefore company is needed to
applies anti-competitive practices in the business operation that help in fixing price suitable in
the market. This practice refers to government practices or business that restrict or cut down
commerce and competition in the given market (Anti-competitive scheme, 2018). In united state
these laws were liable to promote fair competition that provide the best benefit to customer.
There were various laws that target anti competition in the market. Such as price-fixing that
involves agreement between different competition in market to develop suitable prices, level or
rate of production.
2.
Answer. It is known as the raw tuna are the basic requirement form producing the canned
tuna. The tuna are consider to be the foodstuff subject to health and technical standard. Raw tuna
are to be the base for making canned tuna therefore they price of raw tuna is slightly higher than
the canned tuna. This is also because there is scarcity of tuna in US market and is not easy to
prepare canned tuna. In the above case it has been observed that Starkist fix the price of raw tuna
much higher as they want to earn huge profit by selling this to many producer of canned tuna.
3.
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Answer. Merger and acquisition help different companies to work together and make
effective strategies that is very useful in reducing the competition from market. As after merger
two companies work with the similar motive there do not tries to effect the market condition for
a particular product (Dunning, 2013). This merger & acquisition also support in avoiding the
practice of uneven price-fixing by companies in the economy. Thus help to fix price stable of
particular product that will maintain regular demand and supply of product within company.
4.
Answer. The process of collusion means that the competition business firm conform to
work together by agreeing a certain agreement. For example, fixing higher price of the product in
order to make huge profit. It is observed that price are one of the crucial factor that are
considered by customer with quality so they make decision to buy a service or product. When
company collusion then the chance of price-fixing is reduces. So from the above case the Starkist
does price fixing to earn huge profit. But this practice can be reduce if manager of company to
focus on merger with other companies within the same industry.
Q2).
5.
Answer: Nowadays sending of money from one country to another is becoming very
common (Doz, 2017). As people send money to different part of nation just by a click on their
mobile phone of any other devices. Sending of money from Australia, is are much higher than
the global 20 countries. For sending money the government of every county charges an amount
that is to be paid by every transfer or which sending money that is called mark up fees. The
Australian competition and consumer commission has freshly established different financial
services unit that control the mark up percentages within Australia and other G20 countries. The
inquiry by committee has comes to a result that, the exchange rate mark up is generally
controlled within the sale exchanged will not be disclosed separately.
6.
Answer. There are number of bank in Australia that provide useful services to customer.
In country there are number of currency conversion or money transfer companies that ease the
work of customer while sending money for Australia to different part of world (Beamish, 2013).
Some of the largest bank in country are commonwealth bank of Australia, Westpac banking
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corporation, Australia and New Zealand banking Group and national Australian Bank those are
providing different customer services to common people living in Australia. The country has
various online money transfer companies that help customer to transfer money easily some of
these are FinCen, ASIC and World First. All above mention companies and bank were part of
inquiry that is being done by Australian competition and consumer commission. These
companies and bank agreed to fix a common price or a mark up percentage for all customer
those are interested to make transfer.
7).
Answer. The Inquires are conducted for a specific purpose that help to reduce the current
issues within economy. The Australian Competition and Consumer Commission recently
announced an inquiry into price competition, that will help various people within Australia to
easily transfer there money to different part of world. The inquiry help to determine and
addressed ranges of issues such as high rate of product by companies of a particular product or
service, uneven charge of mark up fees from customer when they transfer money (Shenkar, Luo
and Chi, 2014).
Q3
8.
Answer: In the European economy competition plays an important role which makes sure
that various business firm may do their business practices on a high level that deliver the greater
variety of goods and services at different competitive prices and conditions. In recent era the
European competition law particle the fixing of competition within the European individual
industry. This can be done through regulating anti-competitive conduct by business firm to make
sure that there is no cartels and monopolies. This is general that EU have applies different tool of
anti competition policies mostly from the treaty on the functioning of European union (TFEU).
For example there are two companies in market that deals within the same product. The
company will have a decent sales if the competition firm does not fluctuate their prices. In case if
one company actually decrease the price of the product than it will not easy for another company
to survive in market and it may collapse also.
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Q4
9.
Answer. In the above case it has been defined that google has to pay plenty, as they have
skew the market in favor of internet shopping services. The EU has implemented different
allegation on Google that are
 While Google search result the dominate shows google shopping that result careless of
the worthiness of how well the google buying result met the result of the search question.
 In company the manger does not apply system of punishment that is a predetermined set
of constant quantity that result to reduce the arrangement of shopping result and it should
be other form competitors.
 Google's favoring of shopping that it would have negative outcome on the innovative
goods and consumers (Ruigrok and Van Tulder, 2013).
This would have an negative impact on the consumer as they will not believes within the
services and product of Google. As they will start moving to the competition in the market that
provide the best product with the same price and do not disobey any of the laws and regulation
set by the government in order to make sales.
10.
Answer. From the alleges that are implemented by European commission bring antitrust
charges against company. But as the news spread the manager of google has gone on the
defensive level by firing two of their explanation such as, they provide a statistical data that
result to show that search do not effect the businesses in any way. It is just the people want to
explore and gather useful information from search engine. The another defense is related to the
Android has actually increased consumer choice around the nation.
Q5)
11.
According to Eu, the illegal behavior of Google force the producer to per-install search
engine and browser of google from the play app store. The google ask these manufacture to pay a
per-installation fees. Then they will be limited to use only google search by blocking them to use
any other android system.
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Q6
12.
The manager and CEO of google has strongly presented the defense and argument
against the charges of Eu that android might not remain free as a outcome of the ruling. The
restriction at a point is consider to be the skill of substitute party that shows search ads to their
competitors.
Q7
16.
United states: Price of US stocks get high due to oil price fluctuation. Sale of US crude
inventories will increase.
Saudi Arabia: Net impact fall upon GDP of the Saudi Arabia. However, the exports will
increase but the net revenues will be counted lesser comparatively former prices.
Iraq: It is the member of OPEC and second largest producer of crude oils and products.
The frequency of group agreements raise due to fall in price of products. Exports will be
increased to India and china.
Iran: This is the only country that get benefited by decreasing the prices in crude oils per
barrel. The agreements on curb and nuclear programs between US and Iran will change. It will
influence the price of oil supply.
Russia: Frequency will increased by supply of oil products will increase but the revenues
from exports have to suffers form the price fluctuation.
Q8
17.
To produce a product, manufacture have to follow certain basic stem that will be
followed by them to produce quality product. There are basically four stage of product life cycle
that are being implemented by producer to manage the life cycle of their specific goods. These
stages are introduction stage, Growth stage, Maturity stage and decline stage.
18.
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Step taken by manager of apple to extend the product life cycle for the following product
are:
Macs: They develop the powerful batteries, extending life cycle, handle loaded
temperature. They wast energy saver in system preferences and tries to build adjustable keyboard
with more display brightness.
Iphone: Manager of company, focus to move demand of their product by adding new
features like, face and eyes sensor to unlock iphone, more wider view by introducing dual
camera at back side etc.
Ipad: They manager of Apple foucs to upgrade the batteries to Lithium-ion polymer
batteries, that can be recycled and increase the efficient of Ipad.
Iwatches: In recent with the launch of Apple watches they are able to extend their
business and build more customer. Manager added various new features to their watches like,
heartbeat meter, counts the total steps of the person wearing etc.
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Pricing strategy which is used by Apple is skimming pricing. Under this strategy, when a
product is launched in the market it is sold at relatively higher cost due to its unique feature and
with passing time it is sold at comparatively low prices. Due to high prices, their customers build
an illusion of high quality products which result in their high demand. And with the strategy of
skimming pricing where is prices are reduced, people having low income can also afford their
products which helps in enhancing their demand even after the months of launch.
CONCLUSION
From the above report, it has been concluded that international marketing help a company
to expand its business in different part of world and increase the market share. Every company
want to be best form their competition and thus it provide different services and product at lower
price.
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REFERENCS
Books and Journals:
Dunning, J. H., 2013.International Production and the Multinational Enterprise (RLE
International Business). Routledge.
Doz, Y. L., 2017. Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Beamish, P., 2013. Multinational joint ventures in developing countries (RLE international
business). Routledge.
Ruigrok, W. and Van Tulder, R., 2013. The logic of international restructuring: The
management of dependencies in rival industrial complexes. Routledge.
Online
Anti-competitive scheme. 2018. [Online] Available Through:
<https://www.money-zine.com/definitions/career-dictionary/anti-competitive-
practices/>
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