Producers

• What advantage do firms gain by sourcing products from more countries?

  They reduce risk from market collapse
• How does sourcing from multiple countries impact a firm's risk?

  It lessens the impact of market collapse
• Why might firms choose to employ low-skilled workers in developing countries?

  To reduce labor costs significantly
• What is meant by 'comparative advantage' in the context of firms sourcing products?

  It refers to producing goods at lower opportunity costs
• How can larger markets contribute to increased profits for firms?

  By providing more sales opportunities
• What happens to firms that cannot compete internationally?

  They will lose out in the market
• Why is it important for firms to compete internationally?

  To avoid losing market share and profits
• What is a consequence of a market collapse in one country for firms sourcing globally?

  Smaller impact on the business