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Competition has its following disadvantages
Competition has its following disadvantages. Explain each.
a. Financial ties
b. Moral implications
Expert Solution
Financial ties is a disadvantage faced by competing companies because they experience the same level of financial status that inters most of them to lack enough development capital. Besides, financial ties are brought by selling similar products and services in the same business environment. Eventually, financial ties make businesses apply for loans to be supreme in their operations. Still, they are costly to pay, making most of them face operational challenges due to a lack of enough capital.
However, moral implications cause the attitude of hate to overrule a business environment where competition is present. Hatred is caused by the unequal number of served customers by different business, and it causes disunity, which leads to the deprived economic status of the nation's economy. Further, the Unity of businesses, organizations, and companies cause economic growth because they participate in promoting each other towards the achievement of targeted goals.
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