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Barriers to Exit |
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Barriers to Exit Prohibitive costs associated with leaving a sector or market. For example, if a company operating in several sectors wishes to divest itself of its automotive interests, it may have a difficult time selling permanent assets or laying off workers because of high severance costs. Barriers to exit may discourage a company from divesting, or prevent it altogether. Barriers to exit are most common in sectors with high fixed costs. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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