simple to design, has the drawback that it could actually decrease welfare. In contrast, a voluntary plan is always welfare-increasing, but would seem difficult, if not impossible, to design because it requires the use of private information. The government could actually design such a voluntary plan with considerable accuracyРMarketing abroad can be a very risky pursuit as the legal landscape in some countries is extremely fluid. Laws are sometimes uncodified and even when they are, interpretation can be arbitrary. Governments certainly have the right, and in many case the duty, to intervene in businesses or trade being conducted by foreign nationals.РReference: The role of the governmentР What’s the role of the government in market?Р 《Approaching and rating the International Marketplace》
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