Globalization presents a complex economic narrative regarding the distribution of wealth. Proponents argue that the integration of global markets has unprecedentedly lifted millions out of absolute poverty by fostering cross-border trade and allowing developing economies access to advanced capital. This outward flow of opportunity, they suggest, is inherently democratizing in its effect on basic standards of living. However, critics point to a corresponding widening gap between highly skilled, globally connected elites—the 'knowledge class'—and low-skilled domestic workers whose labor value has been suppressed by multinational competition. The resultant trend suggests that while globalization boosts aggregate wealth, its benefits are disproportionately captured at the top end. Therefore, the true impact is not a simple binary of widening or narrowing; rather, it necessitates structural policy interventions to ensure that global gains translate into equitable domestic prosperity.

According to the passage, what is the author's primary stance regarding the relationship between globalization and economic inequality?

Question

Globalization presents a complex economic narrative regarding the distribution of wealth. Proponents argue that the integration of global markets has unprecedentedly lifted millions out of absolute poverty by fostering cross-border trade and allowing developing economies access to advanced capital. This outward flow of opportunity, they suggest, is inherently democratizing in its effect on basic standards of living. However, critics point to a corresponding widening gap between highly skilled, globally connected elites—the 'knowledge class'—and low-skilled domestic workers whose labor value has been suppressed by multinational competition. The resultant trend suggests that while globalization boosts aggregate wealth, its benefits are disproportionately captured at the top end. Therefore, the true impact is not a simple binary of widening or narrowing; rather, it necessitates structural policy interventions to ensure that global gains translate into equitable domestic prosperity.

According to the passage, what is the author's primary stance regarding the relationship between globalization and economic inequality?

Accepted Answer

The author suggests that the impact is nuanced, requiring policy adjustments to ensure equitable distribution of global gains.. A is incorrect because it overlooks the author's call for structural policy interventions beyond mere poverty reduction. B is incorrect because the passage acknowledges initial benefits while arguing against a purely unidirectional widening effect. C is correct because the passage concludes by stating the impact is not binary and requires policy solutions for equitable distribution. D is incorrect because the passage explicitly cautions that globalization does not guarantee the elimination of all economic disparity.