Question

It can be argued that over-regulation is harming U.S. companies and that is a problem for...

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.

Homework Answers

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.
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