I've long been saying labor rates are not a factor in international trade, and allied to this is the problem China has had for a decade or so of labor shortage. Here a professor notes it and advises a solution: improve worker conditions. Yes, that is how markets work. Expect workers to begin to get benefits on top of salary. And, expect China's production to rise even as labor rates rise. We've see it before. It happened in Japan.
Feel free to forward this by email to three of your friends.
Feel free to forward this by email to three of your friends.
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