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>The problem with the chip industry is that Asia has a comparative advantage at it, probably because that is where all the advanced industrial capital investmen
by logicchains 2y ago
>The problem with the chip industry is that Asia has a comparative advantage at it, probably because that is where all the advanced industrial capital investment is happening
Asia has a comparative advantage because labor is much cheaper there. PHDs working at TSMC in Taiwan make less than fresh grads working in software in the US.
- vkazanov 2y agoEverything hardware on all levels pays significantly less than software, be it US, UK or Asia.
- roenxi 2y ago> Asia has a comparative advantage because labor is much cheaper there. You started the sentence with comparative advantage then transitioned smoothly to an absolute advantage - if you want to see low wages, look to Africa. Relative wage levels doesn't determine directly cause comparative advantages. I also note you're also implicitly disagreeing with the article and suggesting that compensation gap is not a myth.