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Government actions

Government actions can kill off an otherwise viable company. For example:

• A change in policy on defence supplies can damage an aerospace or armoured vehicle manufacturer.
• Emission prohibitions for cars can pressurise the luxury car sellers.
• The lifting of barriers to foreign companies may lower profits for your firm.
• A rise in taxes, either generally or more specifically, such as raising petrol duty can kill off many companies.

On the other hand, government actions can boost a company tremendously, e.g. those who take on the work ‘outsourced’ from government, such as finding the unemployed jobs or running prisons. Other examples include subsidies for solar power or bus transport.

So, you need to keep thinking about the potential ...