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Why do lower labor cost in other countries lead to job loss in the US?
Wiki User
∙ 8y ago
Lower labor costs enable producers to export inexpensive products to the United States.
Irma Kerluke
Wiki User
∙ 12y agoBecause American companies find it cheaper to make their products in other countries so they have no reason to make them in the US where it would cost more. Making them in the US would also make the product cost more for the consumer - the average American.
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The foregoing is correct -but only talks about half the issue.
The act of exporting to USA without importing goods /services to an equivalent value is a factor in this issue.
China is case in point.
China imports massively but not necessarily from USA.
This is further distorted as a consequence of an agreement by both parties that USA does not actually pay. They simply provide China with interest bearing IOU's(Government Bonds)
The likely hood is that market forces will control in the end.
This could be economically very nasty.Particularly as USA has no money.
Haven
It enables foreign producers to undersell domestic producers.
Wiki User
∙ 8y agoLower 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.
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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.
How much do goods cost in other countries?
It depends on what kind of goods, and the quantity of goods - and what other countries!
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 =)
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.
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.
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 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 !
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.
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.
Why were English criminal brought to the American colonies?
they provided labor at a lower cost than slaves
