How do American consumers most benefit from globalization?

• A. They are protected from foreign competition by tariffs.
• B. They face fewer choices in the marketplace.
• C. They experience higher prices due to increased competition.
• D. They gain access to a wider variety of goods and services at lower prices.

Answer: (D)

Verified step by step guidance

1. Understand the concept of globalization in microeconomics: it refers to the increased interconnectedness of economies, allowing goods, services, and resources to move more freely across borders.
2. Recognize that globalization typically leads to increased competition among producers from different countries, which tends to lower prices rather than raise them.
3. Consider the effect of globalization on consumer choice: with more producers and countries participating in the market, consumers have access to a wider variety of goods and services.
4. Analyze the impact of tariffs: tariffs are taxes on imports that protect domestic producers but usually lead to higher prices and fewer choices for consumers, which is contrary to the benefits of globalization.
5. Conclude that the main benefit for American consumers from globalization is gaining access to a broader range of products at lower prices due to increased competition and trade.