Especially in a competitive environment, the onus is on enterprises to step up their innovativeness and their ongoing quest to achieve better and better production processes. In a nutshell, more competition creates growth. But in a region that boasts so many leaders in the world markets, this is anything but news to you.
For example, if domestic pricing power is affected by international competition, globalization could affect the relationship between inflation and resource utilization at home. 5  Rogoff (2003) provides an alternative theory of how globalization may affect the central bank’s inflation objective.