Question

When electra decided to produce its "pedal-assist" motor bike it had to adhere to speed regulations. the company found out, however, that safety regulations differ greatly among various countries and it opted to use the u.s. standard which calls for a lower speed motor. this is an example of how _______ forces can affect global trade?

Answer 1

Electra experienced in this case the effect of legal, regulatory differences between the different markets in which they wished to introduce their new product. By choosing to use the lower motor speed, they eliminated the need to redesign the product for the various markets. Instead, one product could be produced and distributed worldwide.