You are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At the same time, your compensation costs increased by 5% because of an annual pay raise. What is the consequence of these events?

lost of investment by 55% or more

Explanation:

Almost half of the firms production capability was lost, a serious effect of the company and its investment, not only do we lose 50% of production capability, our compensation also increased by 5%, a great effect on the finances of the company.

Just with the flood affecting 50% of the firms production has caused a big damaged on the company and the company has lost 50% of its investment which is no way good for any company.

what is the other part to the question

trade regulation is a field of law, often bracketed with antitrust (as in the phrase “antitrust and trade regulation law”), including government regulation of unfair methods of competition and unfair or deceptive business acts or practices. antitrust law is often considered a subset of trade regulation law. franchise and distribution law, consumer protection law, and advertising law are sometimes considered parts of trade regulation law.

in general the theory of economics says that the more open to trade a country is the better   the result for the same country and the whole economies.

in real life countries impose taxes, quotas, etc which is not so good for the economies.

this kind of commercial war between the usa and china is slowing down the growth of the whole world so we can say that it is a draw back of trade regulations. and the free trade agreements are benefits of trade regulations.