When market liberalization is delayed:
A)It gives first movers a significant advantage over later entrants
B)First movers get clear, significant advantages in transitional markets
C)It gives later entrants a significant advantage over first movers
D)Substantial risks to premature entry are removed

Question

Quizplus · Accepted Answer

First movers who succeed in taking over newly privatized state-owned enterprises, such as telecom and energy firms, possess a significant advantage over later entrants, especially when market liberalization is delayed and the host government provides protection to the newly privatized incumbent firms.

When Market Liberalization Is Delayed