Explain the basics of foreign and domestic competition. The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition.
1. Explain how the nature of competition is changing in America.
2. Might there be times when a company becomes too competitive? If so, what could be the consequences?