A newly established company,The Malt Company,wishes to enter the beer market in Country A by building a new brewery there.Many companies already have breweries in Country A.These companies spend heavily on advertising,which Malt is finding difficult to afford.This is an example of ________.

Question

Quizplus · Accepted Answer

The situation described is an example of barriers to entry, as the established companies' heavy spending on advertising creates a significant obstacle for the new company, Malt, to enter the market in Country A.

A Newly Established Company,The Malt Company,wishes to Enter the Beer