Question

What role does competition play in international trade?

It results in higher prices.
It discourages imports.
It drives down prices for consumers.
It does away with the need for investment.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Competition in international trade plays a key role in driving down prices for consumers. When there is competition between different countries or companies, they are forced to lower their prices in order to attract customers. This can result in more affordable products for consumers. Additionally, competition can encourage innovation, efficiency, and product quality, as companies strive to outperform their competitors in the global market. Overall, competition can benefit consumers by providing them with a wider variety of choices and more competitive prices.