Chapter 31: Problem 19

Which statement is the most accurate? (LO11) a) Globalization has made some people winners and others losers. b) Globalization has been good for everyone involved. c) Globalization has been bad for everyone involved. d) Virtually all economists believe that globalization has almost no downside.

Short Answer

Expert verified

In conclusion, statement a) "Globalization has made some people winners and others losers" is the most accurate statement, considering both the positive and negative aspects of globalization.

Step by step solution

Understanding Globalization

Globalization refers to the process of increasing connectivity, communication, and interdependence among countries, leading to the exchange of goods, services, information, and culture. This process has both positive and negative effects on various aspects of society, economy, and environment.

Discuss Positive Effects

Globalization has brought about several positive aspects. These include the expansion of international trade, increased access to information and technology, economic growth, spreading cultural diversity, and improving global connectivity. These benefits generate more opportunities and wealth for those who can adapt to the globalized environment.

Discuss Negative Effects

However, not everything in globalization is positive. Some of the associated negative aspects are the widening gap between rich and poor, loss of jobs due to outsourcing, cultural homogenization, and environmental degradation. These downsides usually disproportionately affect those who cannot adapt to the new global environment or lack various resources.

Compare Each Statement

Now, let's go through each statement to determine the most accurate one: a) Reflects that globalization has winners and losers, acknowledging its positive and negative effects. b) Claims that all individuals benefit from globalization, which omits the negative effects we just discussed. c) States that globalization is bad for everyone, which denies the positive effects. d) Suggests that almost all economists believe in no downside, which is also not true as economists have differing opinions on globalization and its impacts.

Conclusion

In conclusion, statement a) "Globalization has made some people winners and others losers" clearly appears to be the most accurate statement, considering both the positive and negative aspects of globalization.