Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.
Barriers to Entry refer to the challenges and limitations faced by new businesses entering an industry or market. In international trade and logistics, barriers to entry can arise from tariffs, regulatory requirements, capital investment, technology patents, or insufficient supply chain infrastructure. For cross-border e-commerce businesses or small and medium-sized enterprises, barriers to entry may include high logistics costs, complex customs clearance processes, and the need to comply with international certification standards. Understanding barriers to entry can help companies assess risks and formulate market strategies. In some cases, barriers to entry can protect the market share of existing companies, but they can also limit the competitive space for new entrants. Against the backdrop of increasing global trade liberalization, reducing barriers to entry has become a key means for many countries to enhance their competitiveness.
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