Esim - Resetonomics 102
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So, there's these two companies who has business in two neighbouring countries. They are both fairly popular and competitive companies which deals with consumer goods. Let's say the name of the game is end user general computer electronics.
One of the countries have a fascist political movement that rewrites many laws in said country, so that electronic companies are required to mark their goods so that an end user who use their devices for crime can be tracked down remotely.
Marking the goods in this way is expected to rise the production costs by 5%, thus either taking it out on the end user and risk losing customers or taking it out out on the company risking financial hardships.
The two companies comes up with completely different solutions:

Company 1 mark their goods directly in the production line, thus saving in on the expenses. Their goods which now are sold in both countries are all marked and can be traced by the secret police in the fascist country.
Company 2 leave the fascist country in whole, selling their fascist local market to their competitor and focuses solely on the free market, selling only to the democratic country.

The outcome is expected to favor company 1 in the fascist country and company 2 in the democratic country.
At the end of the year, company 1 has the major market share in fascist country and company 2 has the major market share in democratic country, but both companies experienced a decline in their market shares in favour of other upcoming competitors and a general market recession.

Why would both companies and both markets recess and why would both companies lose market to other competitors?
There may be several answers to these question, but I'm after a specific one who covers both questions.

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