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Lower labor costs enable producers to export inexpensive products to the United States.

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Irma Kerluke

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3y ago

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Why does globalization lead to a reduction in wages in developed countries?

Increased mobility allows producers to move jobs to lower-cost labor markets.


When does country X have a comparative advantage in the production of coffee?

When they can produce it at a lower opportunity cost than other countries.


Why do lower labor costs in the other countries lead to job loss in the united sates?

Simply because - if an american company can get a product made cheaper overseas (including the cost of transporting it) - then there is no point employing americans at a higher wage to do the same job ! It's the same in most 'western' countries !


Problems faced by Multinational companies in host countries?

There are many problems faced by multinational companies in host countries. The main problem is the huge cost of labor in the host country so as to be able to coordinate the other branches in other countries.


Why do manufacturing companies that used unskilled labor often move to states or countries where wages are the lowest?

Manufacturing companies often relocate to states or countries with lower wages to reduce labor costs, which can significantly impact their overall expenses and profitability. By utilizing unskilled labor in regions where wages are minimal, these companies can maintain competitive pricing and increase their profit margins. Additionally, lower labor costs can enable companies to invest more in technology or other areas of production, further enhancing efficiency and productivity. This strategy is primarily driven by the pursuit of cost efficiency in a globalized economy.

Related Questions

Why do lower labor cost in the other countries lead to job loss in the US?

Lower labor costs in other countries led to job loss in the United States because it is more cost efficient, the lower wages makes it less costly to have the same amount of workers.


Why do lower labor cost in other countries lead to job losses in the US?

Lower labor costs in other countries led to job loss in the United States because it is more cost efficient, the lower wages makes it less costly to have the same amount of workers.


Which is an example of how employers have lowered labor cost?

moved factories to other countries =)


What has lower global costs of labor have caused?

Lower global costs of labor have caused companies to outsource production to countries with cheaper wages, resulting in job loss and income inequality in higher-cost countries. This has also put pressure on workers in developing countries to accept lower wages and poorer working conditions.


Why were English criminals brought tot the American colonies?

they provided labor at a lower cost than slaves


Why does globalization lead to a reduction in wages in developed countries?

Increased mobility allows producers to move jobs to lower-cost labor markets.


What country is the lowest cost source for precision machinery?

China is known to be a low-cost source for precision machinery. The country has a large manufacturing industry and offers competitive prices for machinery due to lower labor and production costs compared to other countries.


Why are many products NOT made in the US?

Out sourcing of labor is caused by corporate cut-cutting strategies to lower overhead (cost of labor to produce product) thereby, in combination, increasing profit margin, lowering (more competitive) product pricing and increasing market share.The cost of labor is less in other countries where the standard of living is lower than the U.S. because it costs less to live, (i.e. the standard of living lower) workers are either willing or forced to work for less than what and American would work for in the U.S.


When does country X have a comparative advantage in the production of coffee?

When they can produce it at a lower opportunity cost than other countries.


Why do lower labor costs in the other countries lead to job loss in the united sates?

Simply because - if an american company can get a product made cheaper overseas (including the cost of transporting it) - then there is no point employing americans at a higher wage to do the same job ! It's the same in most 'western' countries !


What are two reasons why wages for workers in India are lower than in many other countries?

By it basic goods like food, and clothing cost much less then in many other countries.


Problems faced by Multinational companies in host countries?

There are many problems faced by multinational companies in host countries. The main problem is the huge cost of labor in the host country so as to be able to coordinate the other branches in other countries.