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 among producers (both domestic and foreign) leads to efforts to offer better prices to attract consumers. When there is competition, sellers try to reduce costs and prices to gain market share. Higher prices would not be a result of competition as sellers compete to offer lower prices. Competition generally encourages imports as countries import goods where others can produce more efficiently, and it does not eliminate the need for investment (businesses still need to invest in production, innovation, etc.). So the correct option is the one stating competition drives down prices for consumers.

Answer:

C. It drives down prices for consumers (assuming the options are labeled A, B, C, D with the third option being C; if the original labeling is different, adjust the identifier but keep the text. Based on the options given, the correct one is "It drives down prices for consumers".)