International trade also has a strong effect on jobs in the more developed countries. Most companies now engage in outsourcing, which is a direct outcome of international trade. These companies prefer to hire workers from other countries who can do the same or more work as their local employees for a fraction of the cost. This reduces the number of jobs that are available to the local workforce. It may also lead to unfavorable competition in which the local workers are forced to compete with international workers from countries with lower standards of living who are willing to do the same job for far below the minimum wage.
This particular impact of international trade leads to the fears that some unscrupulous business associates might exploit cheap labor in a manner that is detrimental to the workers from poor countries. For instance, some western companies move their companies to some Asian countries with lax labor laws where they tend to exploit the local workforce by paying them very little compensation for hard labor. Some concerns also arise about the potential of using underage labor in the manufacturing sector, especially the apparel and toy-making sectors. This is an undesirable impact of international trade.