Globalization contributes to both economic growth and rising inequality because it tends to do what?

• A. It can expand growth while also concentrating benefits for certain groups
• B. It expands growth only without inequality implications
• C. It reduces inequality among workers
• D. It has no effect on employment

Answer: (A)

Globalization often boosts overall output by expanding markets, improving efficiency, and spreading technology, which can raise economic growth. At the same time, its benefits tend to be unevenly distributed, concentrating most gains among capital owners, highly skilled workers, or firms deeply embedded in global networks. This combination—strong growth alongside rising inequality—happens because productivity and profits rise where firms can access larger markets and advanced technology, while less-competitive workers or regions may face job displacement or stagnant wages. So the best choice captures both the growth effect and the uneven distribution of benefits. The other options imply growth without inequality, a reduction in inequality, or no employment effect, which don’t align with how globalization typically operates.