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barrier to exit (Ll)<br />The costs or forgone profits of a firm which will occur if it leaves an industry. Barriers to exit are less common than barriers to entry, excepting where a government, to prevent increased unemployment, keeps in existence a large organization threatened with financial collapse; specialized assets may also deter a firm from leaving an industry.<br /><em>See also:</em> ba rrier to ent ry <br /><em>Reference</em><br />Caves, R.E. and Porter, M.E. (1977) 'From entry barriers to mobility barriers: conjectural decisions and contrived deter-
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Regulation Q (E4, E5)<br />The ceiling to the rate of interest US COMMERCIAL BANKS could pay on deposits of less than thirty days' maturity in the period 1933-85. This maximum rate was fixed from time to time by the US FEDERAL RESERVE SYSTEM. One of the aims of the regulation was to reduce the cost of housing finance as THRIFTS would be able to operate with low interest rates. As the regulation was evaded by bankers borrowing abroad to replace domestic deposits, the growth of the EURODOLLAR market was encouraged and much ms!NTERMED!AT!ON occurred. In 1980, it was decided to phase out the regulation over a five-year period.
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