Exit (economics)

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Exit, in economics, means opting out of future transactions.[1]


A firm can secure its ability to exit, for instance, by only agreeing to contracts that contain a clause that allows for termination on terms it feels would be acceptable. In constitutional economics, it implies a right of secession. However, a citizen seeking simply to avoid paying income taxes can also exit by emigrating to a country with more favorable laws, assuming such a country exists and allows their immigration.

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