Final answer:
Factors contributing to increased competition include globalization, which opens up markets to international players, and advancements in information technology, which increase operational efficiency and market access. These factors, along with greater regulatory demands for accountability, create a more competitive business environment.
Step-by-step explanation:
The subject of increased competition in businesses is influenced by a variety of factors, including the forces of globalization and advancements in communications and information technology. These elements contribute to a more competitive environment by exposing firms to more competitors from different regions and countries, each possibly offering better or cheaper products. Moreover, increased competition can stem from regulatory changes that demand greater accountability from companies, thereby affecting their profit margins and market share.
Globalization has enabled firms to enter new markets, but it also allows foreign companies to compete in previously sheltered domestic markets. Additionally, information technology has dramatically transformed how companies operate, permitting real-time communication and data-driven decision making, increasing competition as a result. Effective regulation can help mitigate anticompetitive behavior, but it also requires firms to be more transparent and efficient to comply with regulatory standards.