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> Globalization in its recent form has been all about exploiting labor cost differences. I disagree. The U.S. which has relatively high labor costs, has nevert
by snowwrestler 4y ago
> Globalization in its recent form has been all about exploiting labor cost differences.
I disagree. The U.S. which has relatively high labor costs, has nevertheless been a leading recipient of foreign direct investment.
Specialization is a far stronger driver. Labor cost differentials narrow over time but specialization can be compounding.
- throwaway2037 4y agoYour last paragraph is important. This explains why highly specialised goods continue to be produced in wealthy countries, such as US, Switzerland, Germany, Austria, Korea, and Japan.