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jolli1 [7]
3 years ago
8

A newly established company, The Malt Company, wishes to enter the beer market in Country A by building a new brewery there. Man

y companies already have breweries in Country A. These companies spend heavily on advertising, which Malt is finding difficult to afford. This is an example of ________.
Business
1 answer:
Alina [70]3 years ago
4 0

Answer: barriers to entry

Explanation:

Barriers to entry are also known as economic barrier to entry. They are hindrances which makes entering a particular market difficult by new entrant.

Barrier to entry are fixed cost that must be incur by a new company irrespective of their sales or production level, this cost are incur by new entrant which those who have been in the industry before do not have to incur.

Few common barriers to entry includes technology, government regulation and policy, economies of scale, etc.

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Answer: annual rate of return

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The simple rate of return is also called the unadjusted rate of return or the accounting rate of return.

The simple rate of return is calculated when the incremental net operating income for the year is taken and then divided by the initial investment.

It should be noted that it's not called the annual rate of return.

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