ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Workers are exploited in sweatshops
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Pollution and deforestation
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Low wages for factory workers in Asia and Africa
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Higher pay for factory workers
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Detailed explanation-1: -Negative Effects An increase in hidden unemployment, a lack of new job openings, and a deterioration of real wage rates are the consequences of globalization in most developing economies, which were unable to adapt the new technologies.
Detailed explanation-2: -What are the negative effects of globalisation? The negative effects of globalisation include, greater inequality, increased corruption, reduction in sovereignty erosion of cultural identity and degradation of the environment.
Detailed explanation-3: -Trade thus increases the relative supply of each country’s scarce labor, thereby decreasing its price (that is, wages), and decreases its relative supply of abundant labor, thereby increasing its price (wages). This leads to a convergence of labor costs across countries.
Detailed explanation-4: -Increased Competition. Although free trade can increase a nation’s wealth, it also increases competition. Exploitation of Labor and Resources. Imbalanced Trade. Domestic Job Loss. 25-Jul-2022