Which trend helped transform the US economy toward service and tech sectors in the late 20th century?

• A. Austerity measures
• B. Rising tariffs
• C. Globalization and outsourcing
• D. Agricultural subsidies

Answer: (C)

Globalization and outsourcing reshaped the U.S. economy by moving routine, low-cost manufacturing to other countries, which allowed American firms to focus on higher-value activities like design, development, marketing, finance, and information technology. Advances in communications and computing made it practical to run complex global operations, expanding service-based industries and fueling growth in tech sectors such as software, telecommunications, and information services. As manufacturing jobs declined in many regions, the economy increasingly pivoted to services and technology, supported by global markets and rapid innovation. Austerity measures reduce public spending and don’t drive this shift; tariffs tend to protect domestic production and limit global outsourcing; agricultural subsidies target farming, not the broader move toward services and tech.