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It is in our interest to work in an industry where business practices are reputable. It makes our work easier and reinforces the trust of our customers. Sharing any type of information such as pricing, costs or marketing plans can lead to the appearance, real or perceived, of price fixing, territorial division or other types of manipulations and distortions of the free market.

Kindly explain or provide the paraphrase of this part:

can lead to the appearance, real or perceived, of price fixing, territorial division or other types of manipulations and distortions of the free market.

2007-06-25 02:36:00 · 4 answers · asked by Paresh P 1 in Education & Reference Homework Help

4 answers

Sharing of info such as 1. pricing 2. costs or marketing plans

can lead to the appearance 1. real or 2. perceived

1. price fixing 2. terriroral division 3. other types of manipulations and 4. distortions

of the free market.

2007-06-25 02:44:37 · answer #1 · answered by M C 5 · 0 0

Price fixing is an illegal practice. It is a form of collusion between two or more business supplying a similar product. If, for example, Apple execs met up with Microsoft execs and decided that they would charge the same price for iPods and Microsoft's MP3 players. That ensures both parties will make high profits, and denies consumers the ability to purchase based on who has a better price.

Territorial division is similar, except the two companies agree to stay out of each others' market areas. Apple might stay out of New York, for example, if Microsoft stays out of San Francisco. Its also unethical and probably illegal.

Manipulating and Distorting free markets is bad. Consumers lose because prices are artificiallyinflated.

Hope this helps...

2007-06-25 02:45:10 · answer #2 · answered by chocolahoma 7 · 0 0

Suppose your phone number is gone astray and you find it in the wrong hands; and come to suspect it of a company to which you lent it, it will give you an impression that that company is fraudulent(like in simple words not to be trusted)
. It may be true from your point of view.
Coming to the sentence ......of price fixing(giving false information to a customer of a fixed price), territorial division(using territorial division to manipulate the market) or other types of distortions and manipulations of the free market.

2007-06-25 02:58:46 · answer #3 · answered by vasudev309 2 · 0 0

When you work in a company, it may chance that you share information about the company with others. You must be cautious about it so that it does not lead to unethical practices that are mentioned.

2007-06-25 02:45:30 · answer #4 · answered by trikeya 2 · 0 0

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