What is a benefit of globalization?

What is a benefit of globalization?

• A. Increased tariffs on imports
• B. Decreased reliance on foreign markets
• C. Increased specialization of labor
• D. Reduction of cultural exchanges

Answer: (C)

Globalization facilitates the increased specialization of labor, which is beneficial for economic productivity and efficiency. As countries engage in global trade, they often focus on producing goods and services that they can produce most efficiently. This leads to a division of labor, where different regions or countries specialize in specific tasks, industries, or commodities that leverage their unique resources and capabilities. Specialization allows for higher quality production and innovation, as companies and workers develop expertise in their specific fields. Moreover, it enhances competitiveness, as countries can export their specialized products while importing goods that are produced more efficiently elsewhere. This interconnectedness boosts economic growth and allows consumers access to a greater variety of products at potentially lower prices. The other options do not align with the positive impacts typically associated with globalization. Increased tariffs on imports would generally act as a barrier to trade rather than a benefit, while decreased reliance on foreign markets could hinder economic growth in a globally connected economy. Lastly, globalization tends to enhance, rather than reduce, cultural exchanges by promoting interaction among different cultures.

Globalization facilitates the increased specialization of labor, which is beneficial for economic productivity and efficiency. As countries engage in global trade, they often focus on producing goods and services that they can produce most efficiently. This leads to a division of labor, where different regions or countries specialize in specific tasks, industries, or commodities that leverage their unique resources and capabilities.

Specialization allows for higher quality production and innovation, as companies and workers develop expertise in their specific fields. Moreover, it enhances competitiveness, as countries can export their specialized products while importing goods that are produced more efficiently elsewhere. This interconnectedness boosts economic growth and allows consumers access to a greater variety of products at potentially lower prices.

The other options do not align with the positive impacts typically associated with globalization. Increased tariffs on imports would generally act as a barrier to trade rather than a benefit, while decreased reliance on foreign markets could hinder economic growth in a globally connected economy. Lastly, globalization tends to enhance, rather than reduce, cultural exchanges by promoting interaction among different cultures.