"Given our wage costs relative to those in the Asian newly industrialized economies in China and in Mexico, it does not make sense to try and compete on the basis of restraining labour costs. Rather we should concentrate on other ways of competing, including the development of market niches that involve a high-wage, high-value added strategy." Discuss. use a graph.****

"Given our wage costs relative to those in the Asian newly industrialized economies in China and in Mexico, it does not make sense to try and compete on the basis of restraining labour costs. Rather we should concentrate on other ways of competing, including the development of market niches that involve a high-wage, high-value added strategy." Discuss. use a graph.****

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter16: Gaining From International Trade

Section: Chapter Questions

Problem 8CQ

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Show graphically why the problem of outsourcing production to China, Mexico and elsewhere is a good move economically for many companies.
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