Question

While unintended, what is an adverse consequence of globalization?

A) lower and more competitive oil prices
B) reduced variety and quality of goods and services
C) provision of loans from the World Bank
D) nationalization of private sector holdings
E) worker exploitation and domestic job losses

Answer 1

An adverse consequence of globalization is worker exploitation and domestic job losses.

Step-by-step explanation:

An adverse consequence of globalization is worker exploitation and domestic job losses.

Globalization has led to multinational corporations outsourcing jobs to developing countries with lower labor costs, resulting in unemployment in developed countries. This practice of outsourcing can lead to worker exploitation as labor regulations may be weaker in these countries.

For example, large corporate manufacturers based in the United States have relocated their factories to poorer countries where labor is cheaper and environmental regulations may be weaker. This has resulted in the loss of well-paid working-class jobs in the United States and rising levels of inequality.

The international division of labor also creates competition between the comparatively wealthy workers from core nations and the low-wage labor pool of peripheral and semi-peripheral nations, sometimes resulting in xenophobia.