Why do critics of globalization claim that it creates job insecurity?

• A. Globalization eliminates all trade barriers, making domestic jobs more secure.
• B. Globalization always leads to higher wages for all workers, reducing job insecurity.
• C. Globalization increases competition from foreign firms, which can lead to domestic job losses and less stable employment.
• D. Globalization restricts the movement of capital, which protects domestic employment.

Answer: (C)

Verified step by step guidance

1. Understand the concept of globalization: it refers to the process of increasing integration and interaction among countries, especially through trade, investment, and the movement of goods and services.
2. Recognize that globalization reduces trade barriers, allowing foreign firms to compete more directly with domestic firms in the local market.
3. Analyze how increased competition from foreign firms can affect domestic employment: domestic firms may lose market share, reduce production, or relocate operations to countries with lower labor costs.
4. Consider the impact on workers: job insecurity arises because workers face a higher risk of layoffs, wage stagnation, or the need to switch jobs due to the shifting competitive landscape.
5. Conclude that critics argue globalization creates job insecurity because it exposes domestic workers to global competition, which can lead to less stable employment and potential job losses.