Question

What is a potential downside of globalization? A. Loss of American stature in the world B. Loss of access to raw materials C. Loss of American jobs D. Cheaper prices

Answer 1

The correct answer is - C. Loss of American jobs.

A potential downside for the United States's wellbeing is the loss of American jobs. This is due to the fact that most of the big companies/corporations tend to open affiliations in multiple parts of the world where they have at disposal much cheaper workforce in the local populations and it is economically better for the companies/corporations because they have less expenses for wages, thus increase their profit. This puts the American workers in a disadvantageous position because they can not lower their wage demands to a level of a Vietnamese worker for example because they will not be able to survive with that amount of money in the United States.

Answer 2

One potential downside of globalization is "C. Loss of American jobs," since in a globalized economy, many jobs are "outsourced" to people in foreign countries who are willing to work for less money.