Question

effects of globalization on gdp and poverty
grade 6 social studies - biggs / unit 3: geography of mexico, central america, and the caribbean / topic 19: economic...
might make and sell a lot of goods, it is possible that
workers still face low wages, unsafe workplaces, and
few protections for their rights.
this has led to a debate about whether free trade
agreements should include rules to protect workers,
making sure that economic growth benefits
everyone.

1. what is one major reason companies outsource jobs to other countries?

to increase wages for workers in the country where the company is based.
to lower costs by paying lower wages to workers in other countries
to follow international labor standards.
to reduce global trade agreements.

Explanation:

Companies outsource jobs to cut operational costs. Paying lower wages to workers in other countries reduces labor expenses, which is a core incentive for outsourcing. The other options are incorrect: outsourcing does not raise domestic wages, it is not done to follow labor standards (often the opposite as noted in the text), and it does not reduce trade agreements.

Answer:

B. To lower costs by paying lower wages to workers in other countries