One major economic benefit of global competition is:

• A. reduced consumer choice in the marketplace
• B. higher barriers to entry for new businesses
• C. increased efficiency and innovation among firms
• D. decreased incentives for firms to lower costs

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of global competition. Global competition refers to firms from different countries competing in the same market, which increases the number of competitors and the diversity of products and services available to consumers.
2. Step 2: Analyze the effects of global competition on firms. When firms face competition from around the world, they are pressured to improve their efficiency to reduce costs and innovate to differentiate their products.
3. Step 3: Consider the impact on consumers. Increased efficiency and innovation typically lead to better products, lower prices, and more choices for consumers, which is a major economic benefit.
4. Step 4: Evaluate the incorrect options. Reduced consumer choice and higher barriers to entry are generally not benefits of global competition; rather, global competition tends to lower barriers and increase choices. Decreased incentives to lower costs contradicts the competitive pressure firms face.
5. Step 5: Conclude that the major economic benefit of global competition is the increased efficiency and innovation among firms, which drives better outcomes for consumers and the economy.