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The US government forbids the US companies to sell weapons to certain countries. This is an example of ___

User Gmoney
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Final answer:

The US government prohibiting US companies from selling weapons to certain countries is an example of a government-enforced barrier to entry.

Step-by-step explanation:

The US government prohibiting US companies from selling weapons to certain countries is an example of a government-enforced barrier to entry. This policy can be a form of economic boycott, which serves as an approach to influence a country's policies by restricting trade.

For instance, the United States has used such measures against Iran's nuclear program, leading to the Iran nuclear deal, which relaxed these sanctions in exchange for Iran's agreement to halt nuclear development. Moreover, the restriction is akin to protectionist policies that may impose tariffs to protect national industries crucial to security, reflecting geopolitical strategy and national identity considerations.

Government-enforced Barrier to Entry

When a government prevents its nation's companies from engaging in trade with certain countries, particularly in the defense sector, it acts to protect the nation's security interests. Countries often restrict trade of items related to national security with geopolitical rivals, as these goods, such as missile defense systems, are sensitive and vital to a nation's safety.

User Parvaneh
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