barriers to exit

Definitions (2)
Popular Terms
1. Perceived or real impediments (such as a significant number of loyal customers, or large sums invested in highly specialized assets) that keep a firm from quitting uncompetitive markets or from discontinuing a low-profit product.
2. Legal restrictions placed on the right of certain industries (or on industries in certain localities) to close down their operations and redeploy their resources in more fruitful ventures. While such measures are designed to protect dependent communities from economic collapse or discomfort they, paradoxically, often end up as barriers to entry.


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