Question

question 5 (2 points)
what is import competition?
a) competition from foreign firms in the domestic market.
b) competition solely within domestic firms.
c) lack of international trade.

Explanation:

Import competition refers to the situation where foreign firms sell their products in the domestic market, competing with domestic producers. Option a correctly describes this as it involves foreign firms in the domestic market. Option b is incorrect as it only mentions domestic firms. Option c is wrong as import competition is related to international trade (imports), not a lack of it.

Answer:

A. Competition from foreign firms in the domestic market.