Final answer:
Local companies must compete with international businesses due to economic globalization, which often leads to products becoming cheaper. The correct answer to the fill-in-the-blank question is a) International, cheaper. Globalization increases competition and can lead to both gains for businesses and consumers, and job losses in high-income countries. Therefore, the correct answer is a) International, cheaper.
Step-by-step explanation:
Economic globalization forces local companies to compete with international businesses. To compete, businesses strive to offer the best quality at the lowest price. As a result, products get cheaper, and more people are able to afford them. Therefore, the correct answer is a) International, cheaper.
Globalization has ushered in a new era of competition, where local businesses are not just competing with firms in their own country but also with those around the world. This increased competition leads firms to adopt strategies that can help them remain competitive, such as improving product quality or reducing costs. An outcome of this trend often includes offshoring manufacturing to countries where labor is less expensive, resulting in lower prices for consumers and higher profits for businesses that manage to compete successfully. However, this can also lead to job losses in high-income countries and calls for regulation and incentives to retain jobs domestically.