Critics of globalization claim job insecurity arises because:

• A. Domestic workers lose jobs due to offshoring
• B. Domestic wages rise
• C. Domestic employment increases
• D. Government subsidies increase

Answer: (A)

Globalization makes it easier for firms to move production to countries with cheaper labor, a process known as offshoring. When production shifts abroad, jobs in the domestic economy can disappear or become unstable, creating job insecurity for workers who fear losing their livelihoods. This direct link between offshoring and domestic job loss is why critics point to it as the source of insecurity.

Rising domestic wages would generally reduce insecurity by improving earnings and bargaining power; increasing domestic employment would also lessen insecurity by adding more job opportunities. Government subsidies might affect industries, but they don’t explain why globalization would inherently cause workers to feel insecure about their jobs.