How does global economic competition affect the price elasticity of demand in the domestic market and decisions related to the strategy a firm uses to compete?

Answer 1

Competition is good, even on the global level, as it opens up the possibility for new and even untapped markets for domestic businesses. Prices set in stone can never be competitive, but elastic prices always are. Without price elasticity, the free market cannot work. Inventing prices grind down an economy to a screeching halt.