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  • Essay / REI Case Study - 707

    Expanding into international markets benefits REI, giving them a more diverse market choice. This will allow the company to expand its base of most sought-after products and add new products at lower costs. In this way, REIs' core or core markets benefit.Legal and Regulatory EnvironmentWhat types of legal and regulatory forces affect REIs in the United States?1. AS REI strives to meet consumer demand, they must also comply with various legal and regulatory restrictions in order to meet federal safety requirements. A good example would be helmets, which, in order to be sold, must meet strict safety requirements set forth by state laws. Usually depending on the state, age and conditions vary. Usually, helmets designed for specific sports will have a much higher cost than those intended for minimal use, such as bicycle helmets. Even though bicycle helmets still have strict safety requirements. To benefit from the safety standards that consumers have seen, it is best to pay more for these specific products.2. By having these requirements, REI would have increased demand created by state regulations because they would be able to sell quality helmets at a higher price.