How do consumers benefit in a market with access to multiple local and overseas businesses?

Consumers benefit in a market with access to multiple local and overseas businesses primarily through the ability to compare prices between competing firms. This competition enhances consumer choice and drives firms to offer better quality products and services at more competitive prices to attract buyers. When consumers can evaluate various options, they can make informed purchasing decisions that not only fit their preferences but may also lead to cost savings.

The presence of multiple businesses encourages a dynamic market scenario where firms are motivated to improve their offerings—whether through price reductions, better quality, or innovative features—in order to capture consumer interest. Ultimately, this competitive environment benefits consumers by providing a broader array of choices and options to select from, contributing to overall consumer welfare.

In contrast, other options would limit consumer benefit. Being limited to fixed prices would eliminate the advantages of price competition. Only accessing local markets would restrict the variety and potential advantages offered by international businesses. Lastly, increasing product selection without price differences would suggest no incentive for consumers to choose between businesses, undermining the benefit of competitive pricing.