Income inequality in the United States has increased in part due to globalization. How does globalization contribute to income inequality?

A) It reduces the cost of producing goods and therefore lowers the value of labor services.
B) It allows domestic firms to hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low-skilled workers to fall relative to the wages of other workers.
C) It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average-income households.
D) It allows producers to exploit workers and reduce the wages they are willing to pay those workers.

B