Rising promotion costs and shrinking profit margins are the result of

Question

Quizplus · Accepted Answer

Heightened competition among businesses leads to rising promotion costs as companies try to differentiate themselves and attract customers. This increased spending on advertising and marketing can result in shrinking profit margins as businesses try to maintain their prices while also covering the cost of promotion. Globalization, deregulation, changing technology, and privatization can also have an impact on promotion costs and profit margins, but they are not the primary drivers in this case.

Rising Promotion Costs and Shrinking Profit Margins Are the Result