What factor can drive competition and increase efficiency in Ireland?

Increased competition from foreign businesses can significantly drive competition and boost efficiency within the Irish market. When foreign companies enter the local market, they bring different products, services, and business practices, which compels domestic companies to improve their own offerings to remain competitive. This can lead to innovation and greater efficiency as businesses strive to meet consumer demands and retain market share.

The presence of foreign competitors often encourages local companies to analyze their operations, reduce unnecessary costs, and enhance productivity. As businesses react to the challenges posed by foreign entrants, they may adopt new technologies, streamline processes, and invest in more effective marketing strategies. This healthy competition ultimately benefits consumers through better choices and lower prices.

In contrast, options suggesting limited participation in international trade, reliance solely on domestic markets, or the existence of a single dominant industry would likely result in reduced competitive pressure. These scenarios can lead to complacency among businesses, which may hinder efficiency and innovation, as firms would face little to no incentive to improve their operations or invest in new developments in the absence of competition.