Question

Why has globalization led to some job loss in the United States?

A. Labor costs are lower in other countries.
B. Foreign investment has shifted to developing countries.
C. Protective tariffs prevent the United States from having a trade
surplus.
D. Excessive spending by U.S. consumers has led to a budget deficit,

Answer 1

A. Labor costs are lower in other countries.

Step-by-step explanation:

A. is the right answer. The cost of material, workforce, and taxes are lower in foreign countries, especially in third world countries. Therefore, US businesses are outsourcing and looking for a way to pay less for the labor, while selling goods in the US market and earning way more. With globalization, it is possible to do plenty of jobs online or from the other side of the world, so someone who is paid much less in other counties can do work, while for the employer this costs much less than it would if they gave the job to US citizen. That is why people from the US have fewer work opportunities, while people from other countries are paid less than they would usually be for that job in the US.

B. is not the right answer. While investments are more common in foreign countries, they have not shifted completely, and this does not affect labor as much.

C. is not the correct answer. Tariffs don’t have much to do with job loss.

D. is not the right answer. Excessive spending can only lead to more economic flow.