Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 34: Q.18 (page 832)

How does competition, whether domestic or foreign, harm businesses?

Short Answer

Expert verified

Competition can harm businesses by driving them out of market.

Step by step solution

01

Step 1. Introduction 

Competition can be defined as the situation when different independent producers are striving against each other to attract consumers and gain more profits, or market share.

02

Step 2. Explanation

A foreign seller might be able to produce goods at a lower cost, they would thus be able to also sell them at a lower price. Consumers in the domestic market would prefer cheaper alternatives rather than domestically produced goods. This might drive domestic producers out of the market.

If a business loses its market share it might have to reduce production or even stop its operation. This would cause job loss for their workers.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Do the rules of international trade require that all nations impose the same consumer safety standards?

How is international trade, taken as a whole, likely to affect the average level of wages?

What is the “race to the bottom” scenario?

Do the rules of international trade require that all nations impose the same consumer safety standards?

For each of the following, indicate which type of government spending would justify a budget deficit and which would not.

a. Increased federal spending on Medicare

b. Increased spending on education

c. Increased spending on the space program

d. Increased spending on airports and air traffic control
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free