Globalization has increased factor mobility and market access, requiring local companies to match the cost position of global rivals who often possess low-cost labor advantages.

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Quizplus · Accepted Answer

Globalization has indeed increased factor mobility and market access, leading to heightened competition. Local companies must adapt to compete with global rivals, many of whom benefit from lower labor costs, thus necessitating adjustments in cost structures to remain competitive.

Globalization Has Increased Factor Mobility and Market Access, Requiring Local