What is a potential impact of international trade on businesses?

Access to a larger customer base and increased competition is a significant impact of international trade on businesses. When companies engage in international trade, they can sell their products and services to consumers in other countries, effectively expanding their market reach beyond domestic borders. This access to a global customer base allows businesses to increase sales and revenue.

However, this growth opportunity also brings increased competition, as businesses from different countries can enter the same markets, offering similar products or services. This competitive pressure can lead to innovations, improved quality, and potentially lower prices for consumers. Additionally, it encourages businesses to enhance their value propositions to stay relevant in a more crowded marketplace. International trade ultimately fosters a dynamic environment that can drive growth and improvement for businesses willing to adapt and excel in such a competitive landscape.