Question

How does globalization hurt the United States economy?

A. By increasing international trade


B. By leading to tariff reductions


C. By increasing foreign investment


D. By bringing wage reductions

Answer 1

D. By bringing wage reductions

Step-by-step explanation:

D. By bringing wage reductions

The global labour market has become more competitive as a result of globalization. Companies may outsource specific jobs or establish operations in countries with lower labour costs to reduce costs and remain competitive. This may reduce wages for US workers, particularly in industries with significant international competition. When companies can hire workers at lower wages abroad, they may choose to do so, resulting in job losses and downward pressure on domestic wages.