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Which of the following statements about the effects of globalization are most likely correct? Statement 1: Globalization has led to increased efficiency in markets, resulting in wider availability of products at lower costs. Statement 2: Globalization has led to increased social well-being due to a reduction in social structural inequality.
Correct Answer: A
Globalization has significantly improved market efficiency and lowered product costs by expanding production and distribution networks. However, while globalization has created wealth, it has not consistently reduced social structural inequality, and in some cases, it has exacerbated these divides.ESG Reference: Chapter 4, Page 190 - Social Factors in the ESG textbook.