How does international trade compel local companies to enhance their competitiveness?

Multiple choice question for The International Economy And Globalization. Select an option, then review the explanation below.

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By launching innovative productsThrough improvements in product design and qualityBy reducing product pricesAll of the above

Explanation

International trade encourages domestic firms to boost their competitiveness by focusing on multiple aspects: introducing new products, enhancing product design and quality, and adjusting prices. Therefore, all these factors collectively contribute to their competitive edge.

Practice related questions from the same subject.

1.In which type of goods do Less Developed Countries (LDCs) typically hold a comparative advantage?
2.Why did output decline drastically in the economies undergoing transition?
3.When products are sold abroad at prices below the marginal cost of production and the marginal benefit to local consumers, which policy is most likely supporting this situation?
4.How do tariffs affect the production levels of domestic companies and the consumption habits of consumers?
5.The equilibrium exchange rate adjusts to neutralize disparities in which of the following international economic factors?

How does international trade compel local companies to enhance their competitiveness?

Explanation

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