What is one consequence of globalization related to income distribution?

One consequence of globalization related to income distribution is the increase in inequality. As countries become more interconnected, the benefits of globalization are often not distributed evenly among all individuals and groups within a society. Wealth tends to accumulate among those who are already affluent or possess specific skills that are in demand in the global market.

This can lead to a widening gap between rich and poor, both within countries and between different regions. For instance, while globalization can create high-paying jobs in certain industries, it can also result in job losses in others, particularly in sectors that cannot compete with cheaper labor markets abroad. Furthermore, developed countries may see significant economic growth, while some developing nations may struggle to keep pace, exacerbating existing inequalities.

In contrast, the other options do not accurately reflect common outcomes of globalization. Cultural exchange can often increase as people and ideas flow more freely across borders. Environmental issues do not necessarily decrease; in fact, globalization can sometimes lead to greater environmental degradation due to increased production and consumption. Wage growth is not universally experienced, as it can vary widely depending on the industry and geography, with many workers facing stagnant wages despite global economic shifts.