Government Policy

• Through their decisions about issues such as the granting of licenses and permits, governments can also control entry into an industry.
• governments often restrict entry into some industries because of the need to provide quality service or the desire to protect jobs
• Governmental decisions and policies regarding antitrust issues also affect entry barriers.
• It is not uncommon for governments to attempt to regulate the entry of foreign firms, especially in industries considered critical to the country’s economy or important markets within it.