Question

What is one negative effect of globalization mentioned in the passage? 
 

• A. Decreased economic growth
• B. Reduced cultural exchange
• C. Increased income inequality
• D. Decreased cultural diversity
• E.

Hint:

When a passage contrasts positive and negative aspects, look for keywords like “however,” “but,” or “although” to locate the negative point.

Answer 1

The Correct Option is C

Step 1: Understanding the passage. 
The passage discusses both positive and negative aspects of globalization. The positive effects mentioned include economic growth and cultural exchange. However, it also identifies one major downside that has resulted from globalization. 
Step 2: Identifying the negative effect. 
The passage clearly states that globalization has “led to growing income inequality within and between countries.” This means that while globalization has helped economies grow, the wealth has not been distributed evenly, leading to a gap between the rich and poor. 
Step 3: Evaluating the options. 
(A) Decreased economic growth — Incorrect, as the passage says globalization has increased growth. 
(B) Reduced cultural exchange — Incorrect, since cultural exchange is listed as a benefit. 
(C) Increased income inequality — Correct, this is directly stated as the negative effect. 
(D) Decreased cultural diversity — Not mentioned in the passage. 
Step 4: Conclusion. 
Hence, the one negative effect of globalization mentioned in the passage is increased income inequality. 

Final Answer: (C) Increased income inequality