Question

Globalization has increased the competition among producers.

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

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

Answer 1

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

As a result of globalization, 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.