asked 212k views
3 votes
What attracts international corporations to increase profits while maintaining competitive prices in the global market?

1 Answer

6 votes

Final answer:

International trade allows multinational corporations to increase profits while maintaining competitive prices by combining lower average production costs with competition and variety for consumers.

Step-by-step explanation:

International trade allows multinational corporations to increase profits while maintaining competitive prices in the global market by combining lower average production costs that come from economies of scale with competition and variety for consumers. This is because large corporations can make and sell their products around the world, facing competition from other companies. The competition brings innovation and responsiveness to consumer demands, leading to better products and increased profits for the successful corporations.

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.