MGT Notes

Reference: Strategic Management (5e) – Frank T. Rothaermel (Pg 86)

Government policies can come in the form of restrictive business opportunities and regulations. A country can prevent foreign businesses from setting up shop in their home market for various reasons. This lowers the threat of entry for incumbent firms. Countries can also pursue deregulation of various industries which enables scores of new entrants. In this case, the threat of entry for incumbent firms is high.