Strategic barriers result from actions by existing suppliers like creating excess capacity to reduce interest of potential entrants arranging tong term exclusive contracts and supply and distribution arrangements and potential predatory response by lowering prices if entry takes place. The third type of barriers are regulatory and policy barriers like licensing restrictions requirements to be met by foreign investors trade barriers, including high import tariffs and high environmental, safety and other standards. The anti-competitive stance of policies can be determined by looking at the following presence of non-tariff barriers to imports high tariffs on competitive imports differential tax concessions unequal application of laws and regulations differential access to land, infrastructure, intellectual property rights, etc.
