Question

Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Which of the following statements, if true, strengthens Donna's argument? People in low-wage nations have a high mortality rate and no access to healthcare facilities. Because of the increase in employment opportunities, workers from developing countries flock to developed countries. Low-wage nations tend to have poorly developed transport and communication systems. Many companies take advantage of lenient labor laws by setting up facilities in low-income countries.

Answer 1

Answer:

Many companies take advantage of lenient labor laws by setting up facilities in low-income countries.

Explanation:

Globalization is an economic and political phenomenon that has transformed the relations of production and labor. The companies started to produce in countries where the labor is cheaper, becoming consequently more competitive.For the development of firms and the evolution of capitalism globalization is a very positive phenomenon. However, globalization has some deleterious effects. Some multinational companies take advantage of flaws in the labor laws of underdeveloped countries to exploit the labor of the people of those countries. With low wages and poor social security, people in these countries consume less, get sicker and have less access to goods and services. This hinders human development and hence the productivity and economy of these countries.