If a firm has already established itself in a country with favorable factor conditions, I would think that with zero transportation costs and no trade barriers they might be able to survive without expanding internationally. Of course, it would also depend on the level of competition surrounding them. For everywhere else that may not be in a location with favorable factor conditions, firms would most definitely need to expand internationally. I think that with trade barriers and transportation costs diminished, this would lead to a much more globally competitive environment, leaving only the most innovative firms to survive. Firms with unfavorable factor conditions will be forced to either outsource all of their materials from other countries for production or try to expand internationally. If firms were to only outsource their materials, they may get left behind the curve from the potential competition from other global firms trying to expand their markets.     please help reply to this discussion post