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| Authored by: Ross Jordan on Wednesday, April 06 2005 @ 12:35 AM CDT |
But that's the point, if multinationals can switch places and labour can't, then multinationals control the wage markets, eroding higher wages (and other benefits) in places where citizens fought for them, and not allowing developing countries to move up the ladder.
This doesn't follow.
If a multinational moves to a impoverished country, demand increases -- supply remains fixed; and so wages go up. Yes, its true that if wages go up too much, the company may just exit the country and move to a cheaper one.
There's real evidence of this too -- the wages in China have increased significantly in the last 10 years, to the point where China is not the best deal for many companies anymore.
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