Final answer:
Globalization and advanced communications technology have increased competition by providing customers worldwide with access to price information, leading companies to be more cautious about pricing strategies.
Step-by-step explanation:
The subject in the question pertains to how globalization and communications technology have influenced market competition and pricing transparency. These forces have created a more interconnected global marketplace, where price information for various products is readily available, regardless of geographic location.
This transparency forces companies to strategize carefully about their pricing because customers can easily discover price discrepancies for identical products sold in different countries.Advancements in communications technologies, including the internet, have particularly amplified competition by enabling consumers and businesses to purchase goods and services from all over the world.
Local markets are not only competing with nearby competitors but also with international ones due to the emergence of business-to-business (B2B) platforms that connect buyers and suppliers globally. Additionally, reductions in trade barriers and improved transportation have made people more conscious of global offerings, intensifying competition.