Final answer:
International competition has both benefits and drawbacks for the US economy, with advantages including economies of scale and increased variety for consumers, while potential downsides involve job losses. Overall, the long-term benefits of international trade, such as improved standards of living and economic growth, tend to outweigh the losses.
Step-by-step explanation:
International competition is often regarded as beneficial to the US economy, offering a wide array of advantages. Economies of scale are more attainable when businesses expand into global markets, which can lower costs and increase efficiency for large companies. This international reach provides consumers with a variety of options and competitive prices. Moreover, international trade agreements can mitigate domestic protectionist pressures, potentially fostering a more free-trade environment that benefits the economy as a whole.
However, the downside is that competition with foreign firms offering better or cheaper products can sometimes reduce profits for domestic businesses, leading to job loss and economic strain. Nevertheless, the consensus among economists suggests that the overall gains from international trade often outweigh the losses, enhancing the average standard of living and contributing to economic growth. In essence, while international competition carries risks, the historical evidence underscores its role in promoting economic vitality.