📚 Learning Guide
Labor Market Dynamics
medium

How does globalization typically affect labor supply in developing countries?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Increases labor demand leading to higher wages

B

Decreases labor supply due to migration to developed countries

C

Stabilizes labor supply by creating local jobs

D

Reduces labor supply by promoting automation

Understanding the Answer

Let's break down why this is correct

Answer

Globalization usually increases labor supply in developing countries by opening up new job opportunities and attracting foreign investment. When companies from wealthier nations set up operations in these countries, they often need more workers to meet production demands. This can lead to more jobs being available, which attracts people from rural areas seeking better wages and living conditions. For example, if a clothing factory opens in a small town, many local residents may leave farming jobs to work there because they can earn a steady income. However, this can also create challenges, such as competition for jobs and potential exploitation if labor laws are not enforced.

Detailed Explanation

Globalization often leads people to move from developing countries to developed ones for better jobs. Other options are incorrect because Some might think that more jobs will mean higher pay; It's a common belief that globalization creates stable jobs locally.

Key Concepts

labor supply
globalization impact
Topic

Labor Market Dynamics

Difficulty

medium level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.