Which of the following is a likely result of businesses expanding to serve global markets?

• A. Decreased access to new technologies
• B. Lower consumer choice in domestic markets
• C. Increased competition leading to greater efficiency
• D. Reduced opportunities for economies of scale

Answer: (C)

Verified step by step guidance

1. Understand the concept of businesses expanding to global markets: When firms enter international markets, they face new competitors and larger customer bases.
2. Analyze the impact on competition: Expansion typically increases competition because more firms vie for market share across countries.
3. Consider efficiency effects: Increased competition often forces firms to improve efficiency to maintain or grow their market position.
4. Evaluate other options: Decreased access to new technologies is unlikely since global markets often facilitate technology transfer; lower consumer choice is also unlikely as global expansion usually increases product variety; reduced opportunities for economies of scale contradicts the idea that larger markets enable firms to produce at larger scales.
5. Conclude that the most plausible outcome is increased competition leading to greater efficiency, as firms strive to optimize operations and innovate to compete globally.