Question

What are consequences of globalization? Select all correct responses.

A. Foreign investors have invested in American companies.
B. Many U.S. companies have outsourced their labor.
C. Costs of goods are lower now.
D. Increases in jobs and employment in the U.S. are historic.
E. Employment in services have increased in the U.S.

Answer 1

Feels like a trick question. I would just say many of the answers you can scratch off because they have nothing to do with globalization. For example B just says outsourced there labor, but not outsourced there labor to another country.

Answer 2

^ exactly. Most of these options seem quite indirect and not necessarily due to solely globalization.
A-is wrong because American investors invested in foreign countries, core countries invested in the periphery (Wallerstein's World System's theory)
B-This is true, I suppose you could mark this one
C-Since manufacturing occurred in countries with cheap labor (ie china, india, mexico), the costs of some goods are lower. I guess you could mark this one as well.
D-Jobs are being taken away by other countries as companies have moved their factories in cheaper countries with cheaper labor. So D is completely wrong.
E-This is, however, correct. Services are a tertiary economic activity, and we've only lost jobs in the primary and secondary. U.S. is still gaining jobs in the tertiary sector and we haven't lost them as we've not outsourced service-based jobs.

Thereafter, the correct answers are B, C, and E. It's quite a confusing question, however, because globalization isn't directly related to any of these options.