Which of the following statements is true of globalization?
a. It increases the number of workers in Western economies.
b. It eliminates income inequality between workers and the global elite.
c. It slows down the process of deindustrialization.
d. It exploits poor people in developing countries. e. It gives unprecedented political power to consumer
The correct answer and explanation is:
Correct Answer: d. It exploits poor people in developing countries.
Explanation (Approx. 300 words):
Globalization refers to the increasing interconnectedness and interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. While globalization has brought numerous benefits, such as economic growth, access to new markets, and cultural exchange, it has also led to significant criticisms, particularly regarding inequality and exploitation.
Statement d — “It exploits poor people in developing countries” — is the most accurate among the options. Many multinational corporations move production to countries where labor is cheap, regulations are lax, and workers have fewer protections. This often results in exploitative labor practices, such as extremely low wages, unsafe working conditions, long hours, and even child labor. Sweatshops in parts of Asia, Africa, and Latin America are clear examples of how globalization can sometimes operate at the expense of workers’ rights and well-being.
Let’s review why the other statements are not true:
- a. Globalization may shift jobs from Western economies to developing countries, especially in manufacturing, rather than increasing them.
- b. Rather than eliminating income inequality, globalization has often widened the gap between the global elite and average workers, both in rich and poor nations.
- c. Globalization accelerates deindustrialization in developed countries as production is outsourced to regions with lower costs.
- e. Although consumer preferences can influence global markets, unprecedented political power lies more with corporations and international institutions than with individual consumers.
In conclusion, globalization is a complex phenomenon with both positive and negative effects. While it has helped some economies grow, it has also contributed to the exploitation of poor populations in developing countries, making option (d) the most accurate and truthful statement.