Limited market access due to the product differentiation of transnational corporations


Product differentiation is an obstacle to market entry in that potential suppliers must either engage in advertising, which would require large and long-term capital expenditure, or fix their selling prices below those of established suppliers, which would then not be sufficient to cover average costs. Transnationals are in a better position to overcome market entry barriers caused by product differentiation since the exploitation of advantages arising from specific know-how in this field is one of the main reasons for the internationalization of production.

Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST