Benefits of a competitive economy.

[TEBTC]

WHAT IS A COMPETITIVE ECONOMY

A competitive economy is an economy where no single seller or buyer has a monopoly over the market in terms of  influencing the price of the market but market price is only regulated by the forces of simple demand and supply, It should be noted that a competitive economy is usually associated with free entry and exit without any interference or protection by an state a competitive economy gives all participants a level playing ground without any unfair advantage by any party a competitive economy is efficient because firms can't make excessive profit  because Competition brings down the cost of production over time which gives rise to economic stability and prosperity.
I wrote this thread because of the tariffs that the united states of America has imposed on the rest of the world which is meant to protect their own economy but looking critically at this very move by the trump administration it is  actually a suicidal attempt to put the United State
 economy into problem going forward because the fact remains that the trump administration is aimed at protecting the United States of America economy from competition which is not a healthy one because a careful look at history and looking at how the super economic Powers of today such as China, Russia etc they where economies that where open to competitive so over time these economies evolved into a better competitors which has given them access to global economic dominance leading to a prosperous economy over the long period

BENEFITS OF A COMPETITIVE ECONOMY


 Increased Efficiency and Innovation

Market discipline: Firms must improve productivity and reduce waste to stay competitive.

Innovation drive: Competition pushes companies to innovate in products, services, and technologies to gain a competitive edge.

Lower Prices for Consumers

Price competition _ With more players in the market, prices tend to drop which tends to benefit consumers.

Better value_ Companies are incentivized to offer higher quality at lower costs.

Greater Consumer Choice

More firms and products in the market result in a wider variety of goods and services for consumers to choose from.

Improved Quality of Goods and Services

Customer focus_ Businesses strive to meet consumer expectations which usually leads to better quality and service.

Accountability_ Firms that underperform risk losing market share or failing entirely.

Foreign Investment and Capital Inflow

Attractive market_  A competitive open economy can draw foreign direct investment which brings in capital, technology, and expertise.

Job creation_  Investment can lead to expansion and employment opportunities.

Economic Growth

Productivity boost _ Competitive pressures can increase overall economic productivity.

Dynamic markets_ The economy becomes more adaptable and resilient to change.

Better Resource Allocation

In a competitive market resources tend to flow to the most efficient and productive firms improving overall economic efficiency.

 Integration into Global Markets

Opening up fosters international trade creating opportunities for exports access to global markets and economic diversification.

 

[DeathAngel]

A competitive economy pushes businesses to work harder, improve quality & and lower prices because they want to attract customers. It gives people more choices & often leads to new ideas k better products. Competition also rewards efficiency since companies that waste resources usually don’t survive. For workers it can create more job opportunities as businesses grow. It encourages progress, keeps markets fair & and helps consumers get better value for their money.

[Zanab247]

It help the sellers to get more buyers through their quality product they have showcase for the buyers to view in the market. Another benefit of competitive economy, it  allow companies that are not into quality standard to change to quality standard to get more customers from the market, because is only quality products that can change the mind of customers to focus on a particular product in the market.

Competitive economy also change other manufacturer mind to copy from the company that stand for quality product to prove to their customers, that they have upgrade their products, because without that quality product upgrade, there is nothing that will make their customers to remain with them.

[harapan]

It shapes the minds of the business owners and broadens the horizon for greater impacts and development, a competitive economy give rise to growth and enhance stability and also it creates a good communication medium between the buyer and the seller. Hence the benefits of a competitive economy can't be overemphasized as it's a form of revolution for one's community.

[uneng]

A competitive economy ensures the gears which move society don't get stuck, neither rusty. It's one of the decisive factors which push a country to the next level. Nobody should fear a competitive economy, as it offers learning and development opportunities for everyone involved. It should be perceived as a chance to improve oneself's professional skills and career.

What happens is that some individuals don't like a competitive economy, because it's like playing a game on harder mode, when they could simply play it on easy mode (having the monopoly over a determined niche of the market). It sounds convenient and profitable on short run, although on long term the consequences can be devastating due to stagnation, quality of services going down and customers not feeling satisfied after all.

[abhiseshakana]

A competitive economy within free-market capitalism, in theory, encourages efficiency, innovation, and consumer choice. However, in practice, it often gives rise to exploitation, inequality, hidden monopolies, crises, and socio-environmental damage. Competition within a free market is indeed effective as a means of short-term resource distribution, but it often fails to maintain social justice, long-term stability, and environmental sustainability.

Competition promotes the logic of quick wins over sustainability. A competitive economy within a free market shifts from domestic to global competition. Opening broader market access, encouraging innovation and technology transfer, it negatively increases the dominance of giant corporations, suppresses local industries, deepens inequality between countries, and gives rise to a race to the bottom.

[Ishicryptic]

From your analysis a competitive economy is also a capitalist economy where price determines demand and supply, sellers will be in competition with themselves to improve quality, sales and services to get more patronage which will give them more profits. The Trump, tariff hyke should be a wake up call for these countries that are affected by the US tariff to find other markets for their products and proof that without the American market they can survive. It should also be a wake up call for manufacturers in America, to take advantage of the high tariff to improve on their own products to match the foreign products demand. If their local products can match the quality of the foreign goods and they can sell at cheaper prices, their patronage will be high and they will make more profit.

[BitBakerr1]

All what you have written is correct and I love this thread some nations are going through hardship and poor economy because there's no competitive market, competitive economy will help reduce high cost of things in a nation, when a nation has no competitive economy cost of things will become very high because production is only in the hands of one or two persons and they will decide how to high there price and the customers won't have a choice but to buy but when there's competition the customers which is the people of that nation has a lot of choice and the companies will have no choice but to reduce there price to a level that will be suitable to the people so a competitive economy is very good in a nation, some nations are not practicing this because all the production are in the hands of the government and they do this in other to have control of the economy totally.

[Akbarkoe]

A competitive economy pushes businesses to work harder, improve quality & and lower prices because they want to attract customers. It gives people more choices & often leads to new ideas k better products. Competition also rewards efficiency since companies that waste resources usually don’t survive. For workers it can create more job opportunities as businesses grow. It encourages progress, keeps markets fair & and helps consumers get better value for their money.

True, another important point is the absence of monopolies. Often, when there is no competition, the market is monopolized by companies that dominate the market. They can control market prices at will, and prices remain relatively high in the absence of competition.

Monopolies are the most cruel form of market manipulation, causing many people to suffer, especially if a company has a complex workflow for its employees, from earning money to spending it within the same company.

[alegotardo]

Very good... but I think you focused only on traditional concepts. There are several other social and technological effects that can be added...

When we have healthy competition, it requires not only low prices but also requires these companies to respect consumers and attract them to find "differentiators" in their products that go far beyond price... such as transparency policies and even more sustainable options. They seek these differentiators when they realize they are in a situation where price alone is no longer a decision-making factor.

Similarly, countries and sectors of the economy that are more exposed to this global competition will seek improvements, adopt new technologies to offer something with more added value, reduce their manufacturing costs to obtain a higher profit margin, or find ways to produce the same quantity at a lower price without losing financial margin.

But what I've seen happen, especially now with Trump's sanctions, is that in economic crises, some countries have formed alliances and integrated regional economic blocs to help each other, breaking down barriers and thus increasing resilience against external impacts.

[passwordnow]

A competitive economy means that the country has an healthy economy. Open opportunities for everyone and friendly laws to the businessmen. The developing countries still are struggling with being open to their trade despite that some larger economies are there to support them. Another reason why a competitive economy is there is the leadership is good. It doesn't need a top notch leadership but it should be economical and has the priority to increase their trades in specific industries where they are strong.

[kotajikikox]

A competitive economy pushes businesses to work harder, improve quality & and lower prices because they want to attract customers. It gives people more choices & often leads to new ideas k better products. Competition also rewards efficiency since companies that waste resources usually don’t survive. For workers it can create more job opportunities as businesses grow. It encourages progress, keeps markets fair & and helps consumers get better value for their money.

The country will also be known for innovation. For a competitive economy is usually the one pushing for innovation and technological advancements. They will be inventing things that would be wanted by many other countries and therefore bringing in profits to the country.

[Spaceman1000$]

A competitive economy creates the opportunity for everybody to put in their best because people want to go for the best alone, by doing this you see people bringing up new ideas to certain businesses just so they could be at an advantageous edge over the other, so Monopoly ruins competitiveness and economic growth, however Trump as a president and as a Business man also as a politician is taking some decisions out of political sentiment, which to him is good for his kind of economic policies especially the ones that will affect businesses of interest within America and the one's influenced by America by proxy.

[Salahmu]

All what you have written is correct and I love this thread some nations are going through hardship and poor economy because there's no competitive market, competitive economy will help reduce high cost of things in a nation, when a nation has no competitive economy cost of things will become very high because production is only in the hands of one or two persons and they will decide how to high there price and the customers won't have a choice but to buy

Before we can get this competitive economy is when there is an availability and affordable product that business men and women could purchase at any moment because when productions are very small it cannot go round to accommodate every business person and those that would have it might decide to sell in whichever amount they feel is profitable for them so in other words the inflation keep rising so actually if we go by what you said concerning large quantity of production it will definitely reduce the inflation and creat  a very high competitive market.

[justdimin]

From your analysis a competitive economy is also a capitalist economy where price determines demand and supply, sellers will be in competition with themselves to improve quality, sales and services to get more patronage which will give them more profits. The Trump, tariff hyke should be a wake up call for these countries that are affected by the US tariff to find other markets for their products and proof that without the American market they can survive. It should also be a wake up call for manufacturers in America, to take advantage of the high tariff to improve on their own products to match the foreign products demand. If their local products can match the quality of the foreign goods and they can sell at cheaper prices, their patronage will be high and they will make more profit.

This is true, but people are forgetting, in this world, that creates monopoly. Lets say that Amazon decides that they want to make baby diapers, they have so much money that they can make it as cheap as it gets, they can literally make it half the price of cheapest there is, and that is awesome for the people, correct?

Like you pay 50% less for diapers, newborn baby parents would be excited and super happy. But then, that means, Amazon is the only one selling it, all other diaper companies will bankrupt, and that leaves Amazon as diaper monopoly. Is that a good thing? Where is the competition in there? The sad thing is, we are going to end up with no competition BECAUSE of the competition if we keep this same system going.

[Pearl_20]

A competitive economy enables consumers to have more choices with different varieties of product to choose from according to their budget and taste. It also gives Room for growth because every seller will sit up for new ideas, new market strategies, new packaging to make their business stand out.

Competitive economy benefits both the consumers and seller's, consumers get fair deals while producers are encouraged to improve, grow and develop.

[justinlamode]

A competitive economy is an ideal economy as it has so many beautiful advantages over monopoly. Unfortunately,  there is no perfect competitive economy anywhere, there is always the political and military power that weighs in to make things favor certain interest. Without sounding political, I know you understand what I mean and to help with your understanding, crude oil is cheaper than all of its derivatives, and so are many other natural resources.  These are not mere coincidence. That is why I said fair competitive economy is best taken as theory.

[alastantiger]

It shapes the minds of the business owners and broadens the horizon for greater impacts and development, a competitive economy give rise to growth and enhance stability and also it creates a good communication medium between the buyer and the seller. Hence the benefits of a competitive economy can't be overemphasized as it's a form of revolution for one's community.

It's good, without competition businesses won't grow, it's the competition that encourages business to invest into their quality and branding of their businesses and then the consumers gets the best quality. Competition bring out the best in everything, it also has it's negative side but the positive is what matters because then the customers will be benefiting and get to enjoy the value of their money. Without competition I don't think any sector will grow in a country but they'll only remain the way they're. A competitive economy will generate more revenue for the country and when those revenue are being used wisely, we can get a better economy that benefits everyone.

[traincarswreck]

Tariffs are clearly a tool for competition between nations.  Crying against them is socialism. ldo.

[Solodoski]

A competitive economy has a lot of benefits on the buyers and also the sellers. In a competitive economy, no individual or industry can monopolize the market in price or supply. It helps in price control in the sense that the buyers has a lot of option to choose from and if a price is too high, they buy another option. It also helps to improve the quality of the commodity,  since there are many sellers or producers. They tend to give the best quality, so they can beat their competitors.
It also create job opportunities, since there are a lot of industries producing the same product, it will allow for more employment for the citizens and also reduce poverty, because more people will be employed and will be able to make an income.