Final answer:
Companies increasingly compete based on service quality due to competition from businesses with better or cheaper products. This competition affects profits, employment, and overall national economic gains.
Step-by-step explanation:
More and more companies are finding it necessary to compete based on the quality of their service. This is because competition can have profound effects on businesses, with competition from firms offering better or cheaper products reducing profits and potentially driving businesses out of the market. This competitive pressure leads to workers potentially losing income or jobs. Conversely, businesses with better or cheaper products can increase their profits, and their employees can earn more income, leading to overall benefits for the nation. Factors such as the shift from manufacturing to service industries, globalization, and a reduced desire for unions also play a role in how companies must strategize to compete effectively.