Question

Globalisation has increased the competition among producers.

Which of the following statements explains the cause of such competition?

• A. Due to globalistion, MNCs became profitable.
• B. The competition increased as globalisation facilitated the market access to companies across the world.
• C. Globalisation changed the governments across the countries.
• D. Globalisation has reduced consumer spending.

Answer 1

The correct option is B The competition increased as globalisation facilitated the market access to companies across the world.

As a result of globalisation, MNCs got access to new markets across the world. Today, they can outsource various services and sell their products all over the world. It increased the competition among both local and foreign companies.