Answer and Explanation:
Larger markets can impose sanctions and requirements that alleviate a problem that companies have caused. As the large markets are influential and promote a strong profit for companies, the loss of that market can be very harmful. For this reason, the impositions that these markets impose are often met, so that the commercial relationship is not undone. Therefore, these markets have the power to encourage some problems to be solved.
An example of this can be seen today, when the new president, Jonh Biden, using the US market, which is a large market, demands Brazilian companies to limit deforestation and environmental destruction so that their products continue to be purchased by US government.
Larger markets can apply punishments and restrictions that help companies to solve an issue they created.
The larger market creates many incentives to help the companies in a positive manner.
The loss of a major market, which is important and promotes a strong profit for corporations, can be extremely devastating.
As a result, the constraints imposed by these markets are frequently met, preserving the commercial connection, then these markets have the capacity to encourage the resolution of particular issues.
Example:
When the US market, which is a huge market, is used by the new president, John Biden, to demand that Brazilian corporations reduce deforestation and environmental degradation so that their products can continue to be purchased by the US government.
Therefore, the market incentives help the companies.
Learn more about the markets, refer to:
https://brainly.com/question/10232194
