"We can produce the wine at lower cost because salaries are less," said Juan Corbalán García, who represents the Agri-Food Cooperatives in Brussels. "But that doesn’t mean we’re doing unfair competition."
Perfect example of a race to the bottom.
Perfect example of a race to the bottom.
They move from China to Bangladesh because competition from more productive industries makes Chinese wages grow faster than what garment manufacturing can support, don't they?
(I read that these days even cleaners get about 5 USD/h in the bigger cities. But that's not because cleaners are more productive, but because non-traded sectors get a case of Baumol's cost disease.)