Question

Why does globalization lead to a reduction in prices for goods and services?

Answer 1

Competition for jobs drives down wages, which helps companies lower their prices

Answer 2

I believe the answer is: Increased mobility allows producers to move jobs to lower-cost labor markets

In lower-cost labor markets, the producers could get more output of productions with lower overall salary.
This would lower the cost they need to make a single product, which make them able to sell them on a lower price and still obtain a profit