Name of student : Lại Thị Huyền Trà

Class : BAK9
ID : DTQ1953401010107

Chapter 15

Regulations and Policies Affecting

Exports
CASE 15.1. EXPORT TRADE CERTIFICATE OF REVIEW

Questions

1. What are the benefits of certificates of review to U.S. exporters?

- Companies holding certificates can work together in the appointment of
exclusive agents or distributors, limitations of pricing, or the handling of
competitive products. The benefits of COR include the reduction of
transportation, warehousing, and marketing costs. It also al- lows firms to
establish joint facilities, set common prices, divide markets and sales
territories, bid on large contracts, as well as share space in over- seas trade
shows. Small and medium-sized companies can spread costs and minimize
risks in exporting without violating U.S. antitrust legis- lation. Congress
viewed the uncertain application of U.S. laws to export ac- tivities as
impediments to the growth and expansion of U.S. exports. The certificate
provides antitrust preclearance for the specified export activities.
2. A certificate of review is not granted in certain cases. Discuss.
COR will not be granted if the export activity does any of the following:
• Reduces competition in the United States or results in the substantial
restraint of export trade of any U.S. competitor.
• Unreasonably affects prices of the covered product or services in the United
States.
• Is carried out with the expectation that the products or services will be re-
exported to the United States.

CASE 15.2. ENFORCEMENT OF EXPORT REGULATIONS

Questions

1. In the case of Schering-Plough and Vetco Gray, do you think that ade-
quate internal controls would have prevented corruption?
- In the case of Schering-Plough and Vetco Gray, I think that adequate
internal controls would have prevented corruption.
2. Do you think that preventing certain shipments from going to firms
controlled by the Chinese government (Suntek case) would achieve the
goal of protecting U.S. national security?
- The preventing certain shipments from going to firms controlled by the
Chinese government (Suntek case) would achieve the goal of protecting U.S.
national security.