Disposition of assets. Assets that are hightly specialized to the particular business or location for which they are being used also create an exit barrier. The number of prospective buyers may be few and the price they are willing to pay for these assets will most likely be minimal. Hence, the liquidation value of such assets will be low. Sometimes, assets can be sold in markets where the industry is at an earlier stage in the product life cycle.
Signal to other markets. Another concern is that exiting one country or region may send strong negative signals to other countries thwere the company opertes. Exits may lead to job losses in the host country; customers risk losing affter-sales service support; distributors stand to lose company support and might witness a significant drop in their business. There fore, an exit in one country could create negative spillovers in other markets by raising red flags about the company's commitment to its foreign markets.
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