Question

The most recent period of globalization increased the global GDP at the same time it did what else?

A) Led to runaway unemployment in developed countries
B) Widened the income gap between rich and poor countries
C) Reduced both prices and wages
D) Led to smaller profits for businesses

Answer 1

The most recent period of globalization increased the global GDP and widened the income gap between rich and poor countries. The correct answer is B.

Step-by-step explanation:

The most recent period of globalization increased the global GDP and also led to the widening of the income gap between rich and poor countries. This is because globalization brings an international division of labor, where wealthy workers from core nations compete with low-wage labor from peripheral and semi-peripheral nations.

For example, outsourcing jobs to developing countries has caused increased unemployment in some developed countries. This means that while global GDP may increase, the benefits may not be evenly distributed, resulting in a larger income gap between rich and poor nations.

In addition, the cost of goods and services may decrease due to globalization, leading to lower prices. However, this can also lead to reduced wages for workers in some industries.