FASH355 Study Guide - Midterm Guide: Sunk Costs, Product Differentiation, Competition Commission
1 Jul 2017
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In some cases the barrier to entry becomes an absolute stumbling-block that makes it impossible the entrance of potential competitors in the market and protects the local monopolies that have been previously installed. There is an opportunity here for agencies to advocate changes that would reduce legal barriers. Tribunal goes even further in recommending changes to regulations in certain markets. Government laws & regulations: over-regulation in 1997 has improved in-town shops" market position, with their number increasing by 13. 8%. Foreign direct investment (fdi) has played a significant role in modernizing the spanish economy over the past 35 years. Attracted by spain"s large domestic market, export possibilities, and growth potential, foreign companies set up operations in large numbers: spanish law permits 100 percent foreign ownership in investments, and capital movements are completely liberalized. Making the transition from state-owned monopolies to promoting full and open competition has been a slow, but steady, process.
