Question

It can be argued that over-regulation is harming U.S. companies and that is a problem for international competition. Explore three key points of the problem.

Answer 1

Following are three key points of regulations:

• Anti-Trust law: It has been created to keep strict vigil over the monopolist activities of firms. Many times anti-trust law is invoked to regulate activities of firms. Thus, it affects competitive edge of firms in international market.
• High Taxes: Taxes are high in USA which reduces profits of firms.
• Environmental regulation: US health and environmental regulations are relatively stringent which push up prices of goods produced in USA. Hence, these regulations render company relatively less competitive.