Pressures for cost reductions in international business are primarily driven by:

The correct choice emphasizes that enhanced international competitiveness resulting from market liberalization is a significant driver of pressures for cost reductions in international business. When markets liberalize, companies face increased competition from both local and foreign players, which forces them to operate more efficiently and cut costs to maintain or gain market share. This competitive pressure compels businesses to streamline operations, reduce expenses, and optimize their supply chains to offer competitive pricing and quality.

In a globalized market, firms often attempt to capture a larger share by leveraging cost advantages, which can be achieved through economies of scale, more efficient use of resources, and arrangements like outsourcing or offshoring. As barriers to trade decrease, international businesses must adapt their strategies to remain competitive, and this can lead to significant pressures to reduce costs while still meeting consumer demands.

In contrast to the other choices, they do not directly relate to the overarching pressures across the global market. Increased operational waste in production is a concern for individual firms, but it’s not a universal driver of cost reduction pressures. Higher employee wages in developed markets may affect certain segments but are not as broadly influential on international competitiveness. Finally, while there is a demand for premium products in emerging markets, this typically relates more to opportunities for growth rather than an impetus