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Zorluk: OrtaThe Digital Revolution and Economic Globalization

“The rapid deployment of fiber-optic networks, the internet, and personal computers has fundamentally altered how American companies operate. Functions that once required physical proximity—such as data processing, customer service, and software development—can now be performed instantaneously by workers located anywhere in the world. While these advances have reduced costs for corporations and lowered prices for consumers, they have simultaneously exposed American clerical and technical workers to direct international competition. The stability of the mid-century corporate career is being replaced by a highly flexible, but far less secure, global labor market.”

—Testimony before a congressional subcommittee on economic technology, 1998

The developments described in the excerpt most directly contributed to which of the following economic trends in the United States during the late twentieth and early twenty-first centuries?

  1. A
    The revitalization of traditional heavy manufacturing industries in the Rust Belt
  2. B
    A shift toward government-planned economic models that directly managed technological production
  3. The outsourcing of service-sector and information-based jobs to foreign marketsCevap
  4. D
    The widespread return to protectionist trade policies and high tariffs to isolate the domestic economy

Cevap

The outsourcing of service-sector and information-based jobs to foreign markets
The correct answer is correct because the expansion of digital communication technologies like the internet and fiber-optic networks made physical location less important, enabling corporations to outsource white-collar and service-sector jobs to developing nations with lower labor costs.

Adım Adım Çözüm

1
Analyze the stimulus document for key historical context and clues.
The excerpt is from 1998 congressional testimony detailing how technological advancements like fiber-optic networks and the internet allow tasks to be done globally, which exposes domestic technical and clerical workers to international competition.
Identifying the central theme of the stimulus connects the digital revolution to globalization and its impact on the U.S. labor force.
2
Evaluate the choices in the context of Period 9 economic trends.
Identify that the shift allowed companies to relocate white-collar and service jobs to foreign nations, which is known as offshoring or outsourcing.
Connecting the stimulus's description of global competition in non-physical service tasks to the historical trend of outsourcing.

Anahtar Kavram

The economic impact of the digital revolution and globalization in the late twentieth and early twenty-first centuries, specifically the outsourcing of service jobs and the integration of global labor markets.
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