One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates. True or false?

Question

Social Studies

Louis Sawyer

22 March, 00:39

One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates. True or false?

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Answers (1)

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Rebekah Gallagher · Answer 1

True

Explanation:

A concern by globalization opponents is that failing trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rate and the result of this is a decrease in manufacturing jobs in America and some European countries. An example is the setting up of production/manufacturing, assembling plants in China by some American companies like Apple in China.