High sunk costs limit competition (Automobile Industry India)

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High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Automobile Industry India. … This statements will have a short-term negative impact on this entity, which subtracts from its value. "High sunk costs limit competition (Automobile Industry India)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.

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