Final answer:
A firm's competitive actions are influenced by production and cost conditions, market structure, globalization, and technological changes. These factors collectively determine a firm's strategic decisions in the competitive landscape, affected by government policy interventions as well.
Step-by-step explanation:
A firm's competitive actions and responses are influenced by various conditions in its external environment. Specifically, these responses are influenced by production and cost conditions, market structure, and the forces of globalization and technological advancements. These elements play a pivotal role in shaping how a firm competes within its industry.
Production and cost considerations involve decisions addressing how to maximize efficiency and effectiveness in creating goods or services. Market structure is determined by the degree of competition within an industry and can range from perfect competition to monopolies, shaped by factors such as market power and scale of production. Lastly, globalization and information technology have broadened the competitive landscape, making it necessary for firms to consider competitors not just locally but globally as well.
Government policy is also a factor that can influence competitive actions, as policymakers must balance the benefits of large-scale production against the potential drawbacks of reduced competition due to business growth or mergers. Together, these aspects of the external environment shape the strategic decisions and responses a firm must consider in their competitive landscape.