Blocked markets could be classified geographically or industry wise. When classified geographically blocked markets are those markets where firms from other countries are not allowed to compete. A firm from X country may not be allowed to sell its products in Y country because this will threaten the domestic manufacturers in Y country. This will happen in cases where there is a perception that the domestic country could face a loss of jobs. Though customers will enjoy better products or better prices, worker benefits normally take precedence over employee benefits.
A market can also be called blocked if the Government imposes price restrictions on the firm from the foreign country. This is to create a level playing field for the domestic manufacturers. Companies spend billions of dollars trying to convince the governments to impose or withdraw blocks on markets. One of the outcomes of the formation of the European Union is that it represents a blocked market to outsiders for various products. Countries that are part of the EU will receive preference over others.
A market can also be called blocked if the Government imposes price restrictions on the firm from the foreign country. This is to create a level playing field for the domestic manufacturers. Companies spend billions of dollars trying to convince the governments to impose or withdraw blocks on markets. One of the outcomes of the formation of the European Union is that it represents a blocked market to outsiders for various products. Countries that are part of the EU will receive preference over others.