Why does globalization lead to reduction in prices for gods and serives?

Globalization leads to a reduction in prices for goods and services primarily due to increased competition and economies of scale. As markets open up and companies expand internationally, they can source materials and labor from regions where costs are lower, reducing production expenses. Furthermore, the influx of foreign competition drives domestic companies to lower their prices to remain competitive. This dynamic ultimately benefits consumers by providing access to a wider variety of products at lower prices.