Final answer:
Enabling conditions are essential for business growth in a country and include technology, human capital, and physical capital within a market-oriented economy. Barriers to entry can be government-enforced, such as taxi licensing and safety requirements, or non-governmental, like trademarks and resource ownership, while some market conditions, like economies of scale, do not constitute barriers.
Step-by-step explanation:
The key elements or factors required for a business to take root and grow in a particular country market environment are Enabling conditions. These conditions include a combination of technology, human capital, and physical capital within the incentives of a market-oriented economic context. These elements aid in the economic growth and development of a country. Providing the right environment for businesses includes handling challenges such as government economic controls, which can affect the banking and financial sector along with the provision of loans or subsidies to selected industries.
Classifying Barriers to Entry
- Government-enforced barrier to entry: A city limits the number of licenses for taxicabs.
- Government-enforced barrier to entry: A city requires that all taxicab drivers pass a driving safety test and have insurance.
- Barrier to entry that is not government-enforced: A well-known trademark.
- Barrier to entry that is not government-enforced: Owning a spring that offers very pure water.
- Situation that does not involve a barrier to entry: An industry where economies of scale are very large compared to the size of demand in the market.