Competition
2.95 Competition provides the incentive for a firm to become more efficient and hence more productive. Competitiveness is affected by a number of factors such as barriers to entry to a particular market, number (and size) of competitors, properties of the goods and services traded and geographic location. Goods and services that are easily transported face more intensive competition than goods and services that are localised. Urban areas with high densities are likely to be exposed to higher rates of competition and potential competition.