Final answer:
Globalization increases competition by exposing firms to international markets and competitors, leading to both opportunities and challenges in the global business environment.
Step-by-step explanation:
Globalization significantly affects competition in the business landscape by increasing the amount of competition firms face from other regions and countries. With the advent of new communications and information technology, companies must now compete not only with local and national rivals but also with international competitors. This expansion of competition can lead to more innovative products and services but also puts pressure on firms to improve efficiency and reduce costs.
Critics of globalization point out that it can have negative impacts on the environment and local economies, potentially exacerbating inequalities and exposing countries to international price volatility. On the other hand, globalization might provide opportunities for companies to expand their markets and achieve economies of scale.