Which of the following is a potential challenge firms face due to globalization?

Globalization often leads to intensified competition as firms from different countries enter local markets. This increased competition can stem from foreign companies leveraging their own competitive advantages, such as lower production costs or advanced technologies, which can challenge domestic firms. As markets become more interconnected, local businesses must compete not only with local rivals but also with international firms that may have more experience or resources at their disposal.

The presence of international players can put pressure on pricing, quality, and service standards, forcing domestic companies to innovate and adapt quickly to maintain their market positions. They may also need to invest in their own capabilities to keep up with global standards, which can be resource-intensive.

In contrast, the other options do not accurately represent typical challenges associated with globalization. For instance, while increased barriers to entry may occur in some markets, globalization often leads to deregulation and reduced barriers. Limited access to resources is unlikely since one of the benefits of globalization is that it typically enhances access to a wider range of materials and talents. Lastly, technological advancements are often shared across borders, enabling firms to adopt and innovate more rapidly rather than facing a lack of such advancements.