Answer:
Firms that compete in the global marketplace typically face two types of competitive pressure:
- Price competition: This is the pressure to keep prices low to compete with other firms in the global marketplace. Price competition is often intense in industries where products are relatively standardized and easily substitutable, and where there are many competitors offering similar products.
- Product differentiation competition: This is the pressure to differentiate products from those of competitors to create a unique value proposition for customers. Firms that are successful in differentiating their products can often command higher prices and margins. Product differentiation is particularly important in industries where customers are willing to pay a premium for unique features or attributes that are not available from other competitors.
Step-by-step explanation: