BU481 Chapter Notes -Free Trade
Document Summary
Some of this support is direct, for example, in the form of grants and subsidies for research or plant location. Overall, the aim is to improve economic efficiency by increasing the opportunities open to businesses and with this, the competition that they face. At times, however, compliance is not nearly so easy as it sounds. Some policies are vague, requiring judgments by the business, regulatory authorities, or even in the courts. Some policies are administered inconsistently, and some are changed in midstream. First, you want to ensure that the projected operating costs incorporate anticipated supply developments and the pos- sibilities of government regulatory or tax action. A more difficult task is to evaluate the cost goals that hinge on competitive conditions. Here again it is time to recycle the proposal using the new information to revise the strategy where appropriate. Step 4: rank against other proposals: at this point the strategic proposal is considered to be compatible with the environment.
