3 ms·
but the fact is that the low prices are in fact powered by more than just a simple difference in value between currencies and standard of living. Outsourcing t
by mbesto 13y ago
but the fact is that the low prices are in fact powered by more than just a simple difference in value between currencies and standard of living.
Outsourcing to China is based on a well known economic theory of international trade, called the H-O model[1], which basically says " that countries will export products that use their abundant and cheap factor(s) of production and import products that use the countries' scarce factor(s)."
The pollution and the work place risks (including death) are a really large factor in those price differences
Is this really news? I think the real issue here is the misinformation that is painted across media outlets, hence the OP's "propaganda" comment.
[1]http://en.wikipedia.org/wiki/Heckscher%E2%80%93Ohlin_model http://en.wikipedia.org/wiki/Heckscher%E2%80%93Ohlin_model