Globalization, jobs and income
One concern that globalization opponents frequently voice is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe. The critics argue that falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower. Indeed, due to the entry of china ,India , and Eastern European states into the global trading system, along with global population growth, estimates suggest that the pool of global labor may have quadrupled between 1985 and 2005, with most of the increase taking place after 1990.Other things being equal , one might conclude that this enormous expansion in the global labor force , when coupled with expanding international trade, would have depressed wages in developed nations.
Globalization, jobs and income One concern that globalization opponents frequently voice is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe. The critics argue that falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower. Indeed, due to the entry of china ,India , and Eastern European states into the global trading system, along with global population growth, estimates suggest that the pool of global labor may have quadrupled between 1985 and 2005, with most of the increase taking place after 1990.Other things being equal , one might conclude that this enormous expansion in the global labor force , when coupled with expanding international trade, would have depressed wages in developed nations.
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