The Wal-Marts of the world do just that. Because they buy so much, and in Wal-Mart's case because it is so efficient, they often can afford to sell merchandise for around a small store's wholesale cost. And customers respond. The ethic in this country generally is to let the market decide. Some countries feel differently.
Japan is another country that protects the status quo.
But in trying to do companies a favor, it can wind up destroying them. A book due out next week illustrates that problem. One of the people profiled in this book about Asia's economic future is Zen- zabro Yoshida. His family for generations grew wealthy selling timber in a protected market. But after massive pressure from this country, the market opened.