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.