6. Is government regulation affecting this sector?
a) At the federal, state or local level? What specific policies effect this sector and how? b) How is the sector responding?

Companies engaged in the design, production or distribution of products or services for the consumer discretionary sector are subject to the risk that their products or services may become outdated quickly. The consumer discretionary sector can be significantly affected by several factors, including, the performance of domestic and international economies, exchange rates, changing consumer tastes and trends, marketing campaigns, revenue generation, consumer confidence, commodity price volatility, labor relations, interest rates, import and export controls, intense competition, technological developments and government regulation. “Risks of Investing in the Consumer Discretionary Sector” [1] Government regulations within the sector vary depending on the company, for example for the car industry seat belts, air bags and crash-test standards have all left their mark on car design. And as automakers sell more cars globally, they also have to consider European and Asian regulations. Pedestrian protection standards in Europe, for example, require that cars be made to hit the upper and lower body at the same time, so a victim is more likely to bounce onto the hood. That forces designers to include tall, chunky bumpers, like those on the Jetta and the Ford Focus. Also Government fuel economy standards are rising, and so are consumers’ expectations for fuel efficiency. Thirty miles per gallon was impressive a decade ago; now automakers are routinely making small cars that get 40 mpg or higher. “Government regulations, production costs drive cookie-cutter cars” [2] Government regulations increased competition and decrease profit for the automakers. The cost of developing a new car easily climb to