Internationalization tends to increase competition by increasing overseas firms entering and building capacity in domestic markets and increasing the diversity of competitors within each national market.
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Question

Quizplus · Accepted Answer

Internationalization allows for more foreign firms to enter a domestic market, which increases competition. It also allows for a greater diversity of competitors within each national market, as companies from different countries and industries may now compete against each other. This ultimately leads to increased competition.

Internationalization Tends to Increase Competition by Increasing Overseas Firms Entering