Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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
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