Global competition forces domestic producers to become more efficient and to improve product quality in order to compete with foreign producers, which in turn benefits the overall economy through increased productivity and higher quality goods. It does not necessarily drive up prices worldwide or reduce employment worldwide, and its effect on international migration is more complex and varied.

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Global Competition

Question 116

Multiple Choice

Global competition:

A) forces domestic producers to become more efficient and to improve product quality.
B) drives up prices worldwide.
C) reduces employment worldwide.
D) creates higher flows of international migration than without trade.

Correct Answer: