Practice question
Fresh-food sellers propose counting distant imports as immediate substitutes because import prices at the foreign factory are low. Shipping insurance, duties, spoilage risk and delays make delivered supply unavailable within customers’ buying period. What is the sound approach?
- Use foreign factory prices alone
- Assess delivered distribution costs, restrictions, availability and time before treating imports as practical substitutes
- Exclude all imports in every case
- Include every foreign good automatically
- Ignore customer buying periods
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14-15 and 24-27: https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
Answer this question in flashcards to review your response and continue practicing.