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The price will remain at the same “competitive” level until profits reach a null value. Aggressive competitive pricing can lead to a race to the bottom. For example, a firm can decide to employ an aggressive pricing policy with a mix of competitive pricing and penetration pricing by setting the price 10% lower than its competitors

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Because global competition is tough, a high quality product may lose its competitive edge if the support environment (regulatory framework, business infrastructure) is inadequate. The creation or upgrading of that support environment is essentially a joint venture between the public and private sectors, with government playing a key role in creating aconducive trading

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