How can globalization affect domestic labor markets?

• A. It only increases domestic labor demand by opening new export markets, raising employment across all sectors.
• B. It can both decrease demand for some low-skilled domestic labor through import competition or offshoring and increase demand for skilled workers in export-oriented and high-tech sectors.
• C. It reduces demand for all domestic workers by shifting production entirely overseas.
• D. It primarily affects labor supply rather than labor demand, so it has little impact on wages or employment in domestic industries.

Answer: (B)