Which of the following best describes one advantage and one disadvantage of the global economy for American workers?

• A. Advantage: Reduced unemployment; Disadvantage: Decreased consumer choice
• B. Advantage: Access to a wider variety of goods; Disadvantage: Increased competition from foreign labor
• C. Advantage: Higher domestic wages; Disadvantage: Limited job opportunities
• D. Advantage: Lower production costs for American firms; Disadvantage: Higher prices for imported goods

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the global economy and its impact on American workers. The global economy involves international trade and investment, which affects jobs, wages, and consumer options in the U.S.
2. Step 2: Identify common advantages of the global economy for American workers. One key advantage is access to a wider variety of goods and services at potentially lower prices due to imports from other countries.
3. Step 3: Identify common disadvantages of the global economy for American workers. A major disadvantage is increased competition from foreign labor, which can put pressure on domestic wages and job security.
4. Step 4: Evaluate each option by matching the advantage and disadvantage to these typical effects. For example, reduced unemployment is not necessarily a direct advantage of globalization, and decreased consumer choice is usually not a disadvantage since globalization tends to increase variety.
5. Step 5: Conclude that the best description pairs the advantage of access to a wider variety of goods with the disadvantage of increased competition from foreign labor, reflecting the typical economic impacts of globalization on American workers.