What does barriers to exit mean?

barriers to exit meaning in Law Dictionary

1.something that stops a company from leaving uncompetitive areas or eliminating a nonprofitable item from the marketplace. 2. constraints apply industries who wish to close down or restart. It is meant to protect the communities economy. They are able to come to be barrie

barriers to exit meaning in Business Dictionary

1. Perceived or genuine impediments (particularly an important few devoted consumers, or large sums invested in very specific assets) that keep a company from quitting uncompetitive areas or from discontinuing a low-profit item. 2. Appropriate constraints put on suitable of particular industries (or on companies in certain localities) to close down their operations and redeploy their particular sources much more fruitful endeavors. While these types of steps are created to protect centered communities from financial collapse or vexation they, paradoxically, usually end up being barriers to entry.