Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 21: Q. 18 (page 522)

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

Short Answer

Expert verified

Competition harms businesses by cutting wages and job opportunities.

Step by step solution

01

Step 1. Concept

Domestic business & foreign firms create competition among producers of similar goods & services that impacts the price of goods, wages of workers, and employment.

02

Step 2. Explanation 

When a firm competes with another domestic or foreign firm in the industry, they face the risk of loosing market share. They might even be forced out of the market because of severe competition. This can cause loss of employment for the workers employed in that firm.

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

What are some ways that governments can help people who lose from trade?

Explain how trade barriers save jobs in protected industries, but only by costing jobs in other industries.

Who gains and who loses from trade?

Is international trade likely to have about the same effect on everyone’s wages?

Economists sometimes say that protectionism is

the “second-best” choice for dealing with any particular problem. What they mean is that there is often a policy choice that is more direct or effective for dealing with the problem—a choice that would still allow the benefits of trade to occur. Explain why protectionism is a “second-best” choice for:

a. helping workers as a group

b. helping industries stay strong

c. protecting the environment

d. advancing national defense
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