International trade in goods and services tends to:

Question

Quizplus · Accepted Answer

International trade in goods and services tends to increase the amount of competition facing home manufacturers. This occurs because it opens up new markets for foreign producers to sell their goods and services, which compete with home manufacturers. As a result, home manufacturers must improve the quality of their goods and services, reduce their costs, and increase their efficiency to remain competitive. This increased competition can lead to lower prices and better quality for consumers, but it can also lead to job losses and other negative effects on the domestic economy.

International Trade in Goods and Services Tends To