Final answer:
The contemporary business environment is largely influenced by technology and globalization, which have significantly increased competition through advancements in communication tech like the internet and the growth of B2B marketplaces.
Step-by-step explanation:
The contemporary business environment can be characterized by two significant shifts that have defined market dynamics in recent decades. These are technology and globalization. The advent of advanced communications technology, notably the internet, has empowered consumers to shop for products like books or pet supplies from any corner of the globe, vastly widening their options and thus increasing competition for local retailers. Moreover, this expanded competition translates even more in markets for business supplies. Here, business-to-business (B2B) websites facilitate international connections between buyers and suppliers, which can drastically alter the competitive landscape. Hence, the modern business world experiences high levels of competition due to the interconnected forces of globalization and the proliferation of new technologies that enhance communication and exchange.