Differential labour costs among countries
Name(s):
Negative impact of cross-border trade
Unfair international salary competition
Nature
With increasing economic interrelationships between countries, conditions of workers in one country are negatively affected by conditions in another, and also by their own consumption of imported goods.
Claim
1. A major reason that, say, women workers in the garment and textile plants in some industrialized countries are paid just barely above the minimum award wage is that tens of thousands of Asian young women and children work long hours in such plants at below subsistence wages, producing export goods that flood the market with "cheap" goods in the same industrialized countries.
2. The differentials between wage and social costs in corporations in industrialized and poorer countries are so large that it is unlikely than many European or American jobs can be saved by cutting wages or social entitlements.
Broader
Aggravates
Cheap manufactured products [in 3 loops]
Transfer of industries to low-wage countries [in 2 loops]
Strategy(ies)
Reference(s)
Type
(F) Fuzzy exceptional problems