Economics goverment Essay Example | Topics and Well Written Essays - 1000 words - 1

Economics goverment - Essay Example piece the partnership entailed several economic benefits such as enhanced efficiencies, it became problematic because of the perceived coordination of pricing and separate behavior that were feared to lead to anticompetitive practices. Joint ventures are investigated by the Department of Justice and the Federal Trade guardianship (FTC) based on the provisions of the Hart-Scott-Rodino pre merger notification act of 1976. The said investigation was a indispensability before the venture was finally consummated. There was not court proceeding, without any formal depositions or accounts by both parties of their positions before the court, as well as public disclosure of documents. The investigations merely involved the scrutiny of a huge number of documents. After this type intensive antitrust investigation, FTC finally provided the stamp of adulation and the colligation venture proceeded, although with some modifications.The first legal issue in t he GM-Toyota joint venture pertains to its stupor on the mart. Particularly, there is the perceived likelihood of cooperative behavior wherein the parties - both dominant players in the cable car industry - would cooperate that can disadvantage the position of the consumers (Kwoka, p.50). For example, the level of partnership provides an opportunity for both companies to trap pricing. Ultimately - in this respect - the investigators were concerned that the venture would adversely impact the competition in the market or moderate competitive behavior if a complete consolidation of operations between these both companies was realized.The second and final issue in the investigation concerns the appropriate treatment of Japanese production. Under the supposed voluntary restraint agreement or VRA, Japanese car import is subject to a quota 1.68 cardinal car export to the United States within the period of two years (p. 51). The legal implication of the joint venture is numerous. Firs t, there is the debate whether the