Problem
In the spring of 2022, parents in the U.S. experienced difficulty in securing baby formula. This issue generated much media attention. As part of the reporting, more people became aware that companies operating in the European Union produce about one-third Links to an external site.of the global baby formula supply. Yet, these EU companies cannot import their products into the U.S. because the products do not meet Links to an external site.U.S. Food and Drug Administration (FDA) regulatory requirements. What would happen in the U.S. market for baby formula if the FDA deregulated the market enough to allow the EU companies' (apparently very safe) products to be sold in the U.S?