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.

Explanation:

In international trade, competition typically leads firms to offer better prices to attract consumers. Higher competition means more suppliers, so they compete on price, driving prices down for consumers. The first option is wrong as competition usually lowers prices. The second is incorrect because competition can encourage imports (to access better - priced goods). The fourth is wrong as investment is still needed for growth, innovation, etc., even with competition.

Answer:

It drives down prices for consumers.