What threats does the informal economy present to firms operating in the formal economy?

Read the Chapter 2 Mini-Case: The Informal Economy: What It Is and Why It is Important?

Respond to question 4: What threats does the informal economy present to firms operating in the formal economy? Use examples from your personal experience with the informal economy.

Respond to the following question: What is the difference between exploiting a firm’s human capital and using that capital as a source of competitive advantage? Are there situations in which the exploitation of human capital can be a source of advantage? If so, can you name such a situation? If the exploitation of human capital can be a source of competitive advantage, is this a sustainable advantage? Why or why not?