Answer to Question 1
There are many examples, including health and safety inspections, enforcing environmental regulations, requiring firms to obtain licensing for various aspects of approval or operation, as well as the taxes and/or fee requirements.
Answer to Question 2
The four elements are 1. factor conditions, 2. firm strategy, structure, and rivalry, 3. demand conditions, and 4. related and supporting industries. Factor conditions refer to the basic factors that enable a country to compete internationally. These include land, labor, capital, education of the workforce, and the quality of the country's infrastructure. Firm strategy, structure, and rivalry refers to how the firm has developed its strategy and structure to compete against competition in both the domestic and international environments. Demand conditions refer to the strength of the consumer base domestically and abroad. Related and supporting industries refer to the development of local suppliers in response to a firm's needs.
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