7
practice testMultiple Choice

Practice Test

Question 7 • US History Studies Since 1877

How do American consumers most benefit from globalization?

Answer
A
Creating industries in less-developed countries increases competition.
B
Competing in a global marketplace forces smaller companies to close.
C
Reducing costs for labor and resources lowers the prices of goods.
D
Building factories in foreign countries shifts some jobs overseas.

Explanation

Globalization lets companies buy labor and resources from different parts of the world, often at lower cost. When companies spend less to produce goods, they can charge consumers lower prices. Therefore, consumers most benefit when lower labor and resource costs reduce the prices of goods; shifting jobs overseas or smaller companies closing are not direct benefits to consumers.

AI-written and checked against the verified answer.

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