Final answer:
Globalization has depressed wages for low-skilled workers as they compete with low-wage workers worldwide, although the effects are nuanced and influenced by other economic factors, such as intra-industry trade and labor market flexibility.
Step-by-step explanation:
The student's question pertains to the effect of globalization on wages in western industrialized countries. The answer is that globalization is often seen as imposing costs primarily on low-skilled workers. These workers now face competition from very low-wage workers globally, especially in the production of simpler products. On the other hand, high-skilled U.S. workers may benefit from globalization due to increased sales of sophisticated products.
However, the impact of globalization is not solely negative for low-skilled workers, given intra-industry trade with other high-wage economies and the flexibility of labor markets in the U.S. and other similar countries. The assertion that only low-skilled workers face wage depression due to globalization is more nuanced than it may seem, and the impact varies depending on several other economic factors.
Globalization has depressed wages in western industrialized countries, particularly those for low-skilled workers. Due to increased competition from low-wage workers worldwide, the wages of low-skilled workers in these countries are likely to fall. However, it is important to consider that the impact of globalization on wages depends on various factors such as the structure of labor markets and the flexibility of workers in finding jobs in different industries.