Question

Which statement is true about how globalization has affected American workers? a) The only jobs that have been lost or will be lost are blue-collar factory jobs. b) Most workers who have lost their jobs because of globalization have ended up in better paying jobs. c) Until now a relatively high proportion of Americans performed high-skill, well-paying jobs, while a relatively high proportion of Chinese performed low-skill, poorly paying jobs. d) Globalization cannot be considered a threat to the livelihoods of highly skilled, well-paid American workers.

Short answer

The correct statement is c) Until now a relatively high proportion of Americans performed high-skill, well-paying jobs, while a relatively high proportion of Chinese performed low-skill, poorly paying jobs.

Step-by-step solution

Understand each statement

Begin by closely reading each statement (a) to (d) to determine their meaning and implications about the effects of globalization on American workers.

Evaluate Statement a)

Statement a) claims that only blue-collar factory jobs have been or will be lost because of globalization. This is not true, as globalization can impact workers in a wide range of industries, not just blue-collar factory jobs. Thus, this statement is false.

Evaluate Statement b)

Statement b) asserts that most workers who lost their jobs due to globalization have found better-paying jobs. This statement is also false because while some individuals may have transitioned to higher-paying jobs, there is no substantial evidence to support the claim that "most" workers have found better opportunities after job loss due to globalization.

Evaluate Statement c)

Statement c) says that until now, a relatively high proportion of Americans held high-skill, well-paying jobs, while a relatively high proportion of Chinese workers held low-skill, poorly paying jobs. This statement is accurate since the United States has historically had more skilled and higher-paying jobs compared to China, a nation where many workers have been employed in low-paying manufacturing and related positions. So, this statement could be the true one.

Evaluate Statement d)

Statement d) posits that globalization is not a threat to the livelihoods of highly skilled, well-paid American workers. This statement is not true because globalization can impact anyone's job, including those in high-skilled, high-paying positions. Competition for jobs has increased globally, which means that highly skilled American workers might feel the effects of globalization as well. Thus, this statement is false.

Identify the correct statement

As discussed above, the correct statement is c) Until now a relatively high proportion of Americans performed high-skill, well-paying jobs, while a relatively high proportion of Chinese performed low-skill, poorly paying jobs.

Key concepts

Effects of Globalization on Employment

Globalization has revolutionized the way businesses operate, leading to significant changes in employment patterns around the world. It has enabled companies to access a larger talent pool and take advantage of cost efficiencies by setting up operations in countries with lower labor costs. While this has created new job opportunities, particularly in developing economies, it has also resulted in job displacement in more developed countries such as the United States.

One notable effect of globalization on employment is the shift in manufacturing jobs. Many American manufacturing workers have seen their jobs move overseas. However, globalization has also led to an increase in employment in sectors such as information technology, finance, and other service industries, where jobs may require higher levels of education and specialized skills. The overall impact of globalization on employment encompasses both opportunities in emerging sectors and challenges in the traditional industries, often resulting in a push for workers to upskill or transition to new fields to remain competitive.

Job Displacement Due to Globalization

Job displacement is an undeniable reality in the era of globalization. The ability for companies to offshore operations means that American workers can lose their jobs to workers in other countries who may offer similar skills at a lower wage. This is not limited to blue-collar factory jobs but extends to white-collar professions as well. Businesses seek efficiency and cost savings, and if those can be found by hiring abroad, they will often do so.

Contrary to the claim that 'most workers find better-paying jobs after displacement due to globalization' (as mentioned in the exercise problem, option b), the reality is more complex. While some manage to secure employment that is more rewarding economically, a significant number struggle to find comparable positions. Displaced workers may need retraining or acquire new skills to adapt to the changing job market. It's important to acknowledge that job displacement can lead to long-term unemployment or underemployment for those affected.

Skills and Wage Disparities Between Countries

Skills and wage disparities between countries have been a defining characteristic of the workforce in a globalized world. Historically, developed countries like the United States have had a higher proportion of high-skill, high-wage jobs, while developing countries such as China have offered a greater number of low-skill, low-wage jobs. This is rooted in various factors, including the different stages of economic development, education systems, and industrial strategies.

High-skill American workers have faced increased competition from around the world due to globalization, which challenges the assertion that 'globalization is not a threat to the livelihoods of highly skilled, well-paid American workers' (as mentioned in the exercise problem, option d). Companies now have a broader choice of skilled labor across international lines, sometimes leading to a preference for hiring foreign employees at lower wages for similar skill sets. This dynamic can contribute to wage stagnation and increase the pressure on American workers to continuously advance their skills to maintain a competitive edge.