Question

Globalization ______ the wages of workers in the exporting industries and ______ the wages of workers in the import-competing industries.1) raises; raises
2) raises; lowers
3) raises; does not change
4) lowers; raises

Answer 1

Answer:

Raises , Lowers

Explanation:

Globalisation means increasing interconnected-ness between countries , at a global level .

Globalisation elements include : Foreign Trade, Foreign Capital & Assets mobility, Foreign labour migration etc .

In an exporting country (selling goods abroad) : Domestic Production & hence  derived demand of labour will rise, excess demand of labour rise wages.

In importing country (purchasing goods from abroad) : Domestic Production & hence derived demand of labour will fall , excess supply of labour will decrease wages