Polybord Corporation is a small manufacturing firm that produces printed circuit boards which it sells to about a dozen clients who make personal computers, electronic games, and other electronic products. Competition is keen, with many small firms operating in the field, because entry into the business is relatively easy and requires little capital. The firm depends heavily on bank financing for its operations. It employs 150 production people. Describe what effect the following government actions might have on the operations of the firm:

a. The Federal Reserve Board increases bank reserve requirements.

b. New legislation requires all firms with more than 100 employees to report tax-free contributions that employees make into company-operated retirement systems. Up to now, only the employer's contribution to such systems had to be reported to the government.

c. New taxes are imposed on electronic components imported from foreign countries.