Answer:
The economic system in which an industry operates plays a significant role in shaping the industry and determining how it functions. For example, a capitalist economic system would allow for private ownership of businesses and competition among companies, while a socialist economic system would place more emphasis on collective ownership and government control.
In addition to the economic system, local and international laws also have a significant impact on an industry. These laws can include regulations related to the environment, labor, safety, taxes, and trade. For example, a company operating in an industry with strict environmental regulations may have to invest more resources into meeting those regulations than a company in an industry with less strict regulations.
Furthermore, laws related to trade can affect the industry by opening or closing markets for companies. A company that operates in an industry that is protected by tariffs may face less competition from foreign companies than one that operates in an industry that is open to foreign competition.
In summary, the economic system and laws that affect the industry can shape how the industry operates, by determining the level of competition, the way companies are owned, and the regulations companies must comply with. It also can shape the opportunities for companies in the industry to trade with other countries.