Do you think globalisation will increase competition between firms? and how?
The essence of the free-market, which is essentially what unrestrained globalisation is, is competition. In theory this promotes efficiency, price reduction, efficient exploitation of resources, for when monopolies and economic domination by force is removed and all can start on a level playing field the it is the most sucessfully competitive firms (the most efficient at turning a profit) that succeed within the market and continue to make a profit. A fertile analogy is to compare it with evolution, in nature only the strongest animals will survive, in the free-market only the most competitive firms will keep in business. In practise, however, an unregulated free market is ill-advised, as the recent worldwide financial disasters have demonstrated, even though they were subject to some regulation, the greed that drives competitiveness had destructive consequences.
