Final answer:
Globalization benefits high-skilled workers in the U.S. by increasing demand for products in which the U.S. has a comparative advantage but pressures low-skilled workers due to global competition, outsourcing, and job losses, exacerbating income inequality.
Step-by-step explanation:
Globalization has had complex effects on the economic landscape of the United States. High-skilled, high-wage workers often benefit from globalization due to increased sales of sophisticated products like computers and machinery, where the U.S. holds a comparative advantage. Conversely, low-skilled workers in the U.S. face competition from the global labor market, where wages are significantly lower, potentially leading to a decrease in domestic wages for low-skilled jobs. Globalization also often results in outsourcing, where U.S. companies move factories to countries with cheaper labor and weaker environmental regulations, leading to job losses in the U.S. and increasing income inequality. While some suggest that globalization has not significantly impacted low-skilled wages due to intra-industry trade with other high-wage economies, the overarching trend suggests a widening gap between the rich and poor in the U.S. due to globalization and international labor dynamics.
Moreover, globalization through outsourcing has affected employment in the more traditional manufacturing and service industries. The rise of international competition and offshoring produces unemployment in certain sectors within developed nations, challenging workers to adapt to new economic realities, necessitating retraining, and fostering resentment in some cases. This has sparked political responses seeking to regulate globalization's influence on domestic jobs. Overall, the impact of globalization on wealth distribution within the U.S. illustrates the multifaceted outcomes on different segments of the workforce