what is one way low wages paid to workers in developing country's has a negative affect on developed country's

1 answer:

5 0

In developing countries, labor is cheap and low wages are paid to employees. This enables firms to manufacture products at a low cost and, therefore, to fix low prices for them too. Such goods are exported because they become attractive in the international sphere due to their price. Domestic products from developed nations cannot compete in prices with those imports, because their production costs are much higher, specially the labor costs.

If domestic products cannot compete with imports, domestic firms will not be able to sell their products and this would lead to decrease in sales, a loss of profit and to an excess of employees that wil have to be dismissed.

<u>In absolute terms, low wages in a developing country reduce the production, income and employment levels in developed countries. </u>

You might be interested in

What 4 countries gained their independence in the early 1800's

Shalnov [3]

Haiti, Mexico, Argentina, and Colombia all gained their independence in the early 1800’s. (there are more like Venezuela, Panama, etc.)

3 0

3 years ago

The ten comandments and the five pillars of wisdom are similar in that they

DIA [1.3K]

They outline a guide to the life of the followers of their religions

4 0

3 years ago

Read 2 more answers

Assume that the U.S. inflation rate is lower than the New Zealand inflation rate. This will cause U.S. consumers to ____ their i

Misha Larkins [42]

Hello there!

The aswers is: This will cause U.S. consumers to <u>increase</u> their imports from New Zealand and New Zealand consumers to <u>reduce</u> their imports from the U.S. According to purchasing power parity (PPP), whis will result in an <u>appreciation</u> of the New Zealand dollar (NZ$).

Explanation:

The inflation rate refers to an overall increase in the Customer Price Index (CPI), a weighted average for different goods. If this the U.S. inflation rate is lower than the New Zealand inflation rate, the U.S. will have the opportunity to import more products and/or goods as they rate means economic certainty, and New Zealand as being more affected, their imports will decrease.

8 0

3 years ago

Which of the following best illustrates the theory of delegate representation?

xeze [42]

The theory of delegate representation is best illustrated by "my job to present the people who elected me regardless of my point of view".

<h3>Who is a delegate?</h3>

This refers to a assigned person to represent a society, region etc as a representative in a political convention.

Hence, a delegate representation is expected to say that my job to present the people who elected me regardless of my point of view.

Therefore, the Option B is correct.