How does international trade enhance domestic competitiveness?

International trade enhances domestic competitiveness by exposing local businesses to global markets, which encourages innovation and efficiency as they strive to meet international standards. Access to a broader range of resources and technologies allows domestic companies to improve their products and processes. Additionally, competition from foreign firms can drive local businesses to enhance quality and reduce costs, ultimately benefiting consumers. This dynamic fosters a more competitive business environment that can lead to economic growth and job creation.