Licensing requirements is the barrier faced by firm.
Barrier to entry means the factors that hinders a firm from establishing business activities in an economy.
- Low input prices and shortage are not barrier to entry for a firm.
- Licensing requirements varies from country to country. Some country practice strict licensing and this serves as barrier to those planning to enter into the industry.
Other factors that serves as barrier to entry are:
- High Capital requirements
- Low access to distribution channels
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