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The following is an example of a highly regulated service market where it is difficult for international players to enter.

a. Healthcare
b. Logistics
c. Advertising
d. Fast food

1 Answer

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Final answer:

The healthcare sector is a highly regulated service market that poses difficulties for international companies entering due to governmental regulations. Barriers to entry can be government-enforced, like licensing laws and trademark protection, or not, like economies of scale. McDonald's global presence is an example of globalization.

Step-by-step explanation:

The example of a highly regulated service market that is challenging for international players to enter is healthcare. This sector is often subject to rigorous controls, including stringent licensing requirements, safety, and environmental standards that can act as tertiary barriers to market entry. These regulations can make it difficult for companies to adapt to different countries' standards, discouraging them from entering the market.

In classifying barriers to entry, government-enforced barriers include cases where a city passes a law on the number of licenses for taxicabs, as well as the protection of trademarks. In contrast, economies of scale, owning a spring with very pure water, and a well-respected brand name represent non-government-enforced barriers. An industry where economies of scale are very large compared to the size of demand in the market creates inherent challenges to new entrants, as significant investment and volume are required to compete.

Finally, the widespread presence of McDonald's restaurants globally is an example of globalization, indicating the extent to which a brand can permeate various markets around the world through business strategies that transcend national borders.

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