what role does competition play in international trade?

Question: what role does competition play in international trade?

Answer:

Competition is one of the main phenomena of international trades. It spurs innovation, efficiency and, comparative advantage among nations. Thus, by competing, countries aspire to produce goods and services at cheaper prices than what rival trading partners produce or at higher standards than sides, which then they can employ for getting an upper hand over the other in the global market. Consequently, the duration in such competitiveness leads to nations to concentrate on where they have innate benefits such as abundant resources, skilled labor, or technological advancement. As a result of healthy competition, the resources are allocated optimally, boosts economic growth and the best service the consumers need to enjoy the best quality product at a price they can afford. The lack of rivalry, as a general factor, may reduce the global trade promotion and might disrupt the usage of this tool for attainment of the efficient distribution of the national peculiarities.