What is any factor that makes it difficult for a new firm to enter a market referred to as

Question

Jaida Fuentes

Business

6 October, 20:44

What is any factor that makes it difficult for a new firm to enter a market referred to as

+1

Answers (1)

Know the Answer?

Armando Joseph · Answer 1

Barriers of trade

Explanation:

Barriers of trade refers are obstacles that make it difficult for new business competitors to enter an industry. It is an economic term that describes restrictive conditions to entry in a particular sector. Existing firms benefit from barriers to trade as their revenues and profits are protected.

Barriers to trade may be as a result of high start-up cost, natural reasons, or government policy. High start-up is the capital required is high that discourages new entrants. Natural reasons may include the presence of resources such as high-value minerals in specific geographical areas. Barriers to trade make the market less competitive.