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Explain The Barriers To Entry In The Canadian Economy

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Business 201: Individual Research Assignment
The Canadian Transportation Industry is an important aspect of the Canadian Economy, representing 4.3% of total Gross Domestic product in 2015(Transportation Canada 2015). The Canadian Transportation Industry consists of the air, marine, rail and road freight sectors, which all work together in conjunction to drive Canada’s domestic and international trading activities (MarketLine Transportation Service, 2017).
1.) What are the barriers to entry in this industry?
The barriers to entry in the transportation industry, varies from sector to sector, with new entrants experiencing medium to high barriers to entry. Among the sectors, the road freight sectors have the lowest entry barriers, especially for small businesses. This is because of the relatively few capital and specialized knowledge required to enter the market. Furthermore, new entrance will also face fewer regulations compared to the others sectors. Regulations in this sector will typically cover driving abilities, insurance and the vehicle safety and driver rest time regulations set and enforced by the federal and provincial government (Sayler, 2017). Generally …show more content…

Depending on the Transportation sectors, the bargaining power of the suppliers and the type of suppliers may vary within the industry. However, within the transportation industry, the big suppliers include oil/electricity companies and transport infrastructure companies (MarketLine Transportation Service, 2017). For example, companies that operate within the road freight sector often face moderate supplier power. To illustrate the road freight sector experiences a lower amount of oligopolistic behavior among their supplier, because of the higher number fuel companies are available for automotive equipment (MarketLine Road freight,

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