Globalization, characterized by increased cross-border trade and capital mobility, presents a complex picture regarding global economic equity. Proponents often argue that the integration of developing economies into world markets has lifted millions out of absolute poverty, creating unprecedented wealth accumulation for many nations previously marginalized. However, this narrative overlooks significant internal disparities. Critics point to the phenomenon where technological advancements and financialization disproportionately benefit highly skilled workers and capital owners in developed hubs, while routine labor jobs are subjected to wage stagnation or precarious employment across emerging economies. Consequently, while globalization has undeniably raised the global material standard for some segments of the population, it simultaneously risks creating a bifurcated world—one of hyper-affluence and another characterized by widening income gaps within nations themselves.

According to the passage, what is the central argument regarding globalization's impact on economic inequality?

Question

Globalization, characterized by increased cross-border trade and capital mobility, presents a complex picture regarding global economic equity. Proponents often argue that the integration of developing economies into world markets has lifted millions out of absolute poverty, creating unprecedented wealth accumulation for many nations previously marginalized. However, this narrative overlooks significant internal disparities. Critics point to the phenomenon where technological advancements and financialization disproportionately benefit highly skilled workers and capital owners in developed hubs, while routine labor jobs are subjected to wage stagnation or precarious employment across emerging economies. Consequently, while globalization has undeniably raised the global material standard for some segments of the population, it simultaneously risks creating a bifurcated world—one of hyper-affluence and another characterized by widening income gaps within nations themselves.

According to the passage, what is the central argument regarding globalization's impact on economic inequality?

Accepted Answer

While boosting overall wealth, globalization's structure tends to exacerbate income gaps both between nations and within them.. C is correct because the passage synthesizes the initial positive claims with the counterpoint about internal disparities to conclude a mixed, widening effect. A is incorrect because the passage suggests *risks* of disparity, not that poverty has been definitively eliminated. B is incorrect because the passage explicitly cautions against viewing the impact as universally positive or uniform. D is incorrect because the passage highlights wage stagnation and disproportionate benefits, directly contradicting the idea of commensurate increases.