Western Governors University (WGU) ENGL1712 D270 Composition: Successful Self-Expression Midterm Practice Test

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Which statement illustrates a pro of globalization related to competition?

It reduces consumer choice.

It creates monopolies.

It raises tariffs.

It increases competition.

Globalization tends to boost competition by opening markets to more players from around the world. When borders stay open and trade barriers fall, firms from different countries can enter the same markets, pushing each other to improve—lower prices, higher quality, and innovative products and services for consumers. That surge in rivalry is the positive competitive force globalization brings.

The other statements describe outcomes that don’t illustrate this pro-competitive effect: reducing consumer choices would be a drawback, monopolies imply less competition, and raising tariffs creates barriers instead of promoting global competition.

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