Экспорт
Competition leads to a constant increase in production efficiency. It motivates manufacturers to avoid losses and reduce costs, in order to sell goods at lower prices than competitors. Competition displaces producers with high costs.
Competition works when there is an opportunity to choose among sellers and when there is freedom of appearance of new sellers in the market. Large and small firms can participate in competition. Competitive firms can compete at the local, regional, national or even world markets. Competition is also important for a market economy, like blood for the human body.
Competition exerts pressure on producers, encouraging to conduct their business effectively and take into account the needs of consumers. It eliminates those participants, who proved their own inefficiency: firms that are not capable of providing consumers with quality products at competitive prices.
It is necessary to produce high-quality products, attraction, excellent service, convenient office location, advertising, and prices. Moreover, producers have to offer consumers services that are more valuable than competitors are.
What holds "McDonald's", "General Motors" or any other company from increasing prices, selling low-quality goods or providing substandard services? Competition. If McDonald's will not be able to sell sandwiches for a modest price and with a smile, people will go to his competitors. "General Motors" can lose its customers, losing to their "Ford", "Honda", "Toyota", "Chrysler", "Volkswagen", "Mazda" and other car manufacturers, if it does not manage to stay on par with her rivals.
Industries with rigid entry barriers (that require huge initial costs) are difficult to enter for a new company. Such industries are car sector, telecommunication, petrol, and others. According to Veraart Research Group, most competitive production sectors are Fashion and Clothing.