Question

How does competition, whether domestic or foreign, harm businesses?

Short answer

On one hand, competition have many advantages but on the other hand it also has several criticism too.

Step-by-step solution

Step 1. Meaning of competition.

It refers to a situation in the economy where various firms fight for the customers attentions by supplying them with similar products. Moreover, if one company achieves more sales at any given time, it implies the other have decreased their sales rate. For a company to become more competitive, it must ensure that it has adopted effective marketing, increased the quality of goods and establish good customer care.

Step 2. Competition whether domestic or foreign, harm business.

Basically, competition in a larger context have many advantage as it fostering innovation, attractive prices for consumers and businesses as competition from firms with better or cheaper products can reduce a business's profit and may drive it out of business. Workers would similarly lose income or even the their jobs.