What effect does globalization have on free enterprise?

What effect does globalization have on free enterprise?

• A. It limits market access for local businesses
• B. It reduces the competition in the market
• C. It expands markets and increases competition
• D. It has no impact on innovation

Answer: (C)

Globalization significantly enhances the free enterprise system by expanding markets and increasing competition. As businesses operate on a global scale, they gain access to a larger customer base, allowing them to pursue opportunities beyond their local markets. This access encourages businesses to innovate, improve products, and lower prices, as they strive to compete with international rivals. Additionally, globalization fosters a more dynamic environment where companies can share ideas and best practices across borders, leading to improved efficiency and higher quality goods and services for consumers. The increased competition also promotes consumer choice, giving customers more options when it comes to products and services, ultimately benefitting the economy as a whole. Therefore, globalization acts as a powerful catalyst for growth and competitiveness within the framework of free enterprise.

Globalization significantly enhances the free enterprise system by expanding markets and increasing competition. As businesses operate on a global scale, they gain access to a larger customer base, allowing them to pursue opportunities beyond their local markets. This access encourages businesses to innovate, improve products, and lower prices, as they strive to compete with international rivals.

Additionally, globalization fosters a more dynamic environment where companies can share ideas and best practices across borders, leading to improved efficiency and higher quality goods and services for consumers. The increased competition also promotes consumer choice, giving customers more options when it comes to products and services, ultimately benefitting the economy as a whole. Therefore, globalization acts as a powerful catalyst for growth and competitiveness within the framework of free enterprise.