An increase in globalisation means that there are more companies competing for a domestic companies consumers increasing the competition they have to face.This then means that those ompanies have an incentive to improve their products and differentiate themselves from the competition and also lower their average costs in order to have more desirable products for the consumer. In order to do this the company must increase their investment which means they will increase their capital that they have to produce goods and services meanng they will be more productive resulting in an increase in the domestic competitiveness.