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What is one of the drawbacks to globalization?

  • Question 10b of 10 - Global patterns

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: What is one of the drawbacks to globalization?
  • Answers:
  1. Developing countries are industrializing and improving infrastructure at a rapid rate.
  2. Countries and businesses must reduce wages paid to workers in order to attract foreign investment. Correct! International competition for investment puts countries into the position of having to offer the lowest possible production costs, particularly wages, to lure producers into their economy.
  3. Producers have increased freedom to move their operations to lower-cost regions of the world.
  4. Companies charge lower prices for their goods and services to compete in the global economy.

The correct answer is: Countries and businesses must reduce wages paid to workers in order to attract foreign investment. International competition for investment puts countries into the position of having to offer the lowest possible production costs, particularly wages, to lure producers into their economy.

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