Foreign Workers, Low Wages

Topics: United States, North America, Developed country Pages: 3 (1099 words) Published: November 3, 2012
Is it fair to workers of developed countries when companies shift work to lower wage countries?

The main reason companies shift work to lower wage countries is to reduce operating costs. Low labour, production, and energy costs in countries such as China, Japan, India, and Mexico is causing companies to shut their factories within the United States and open new factories in those foreign countries. This leads to the loss of jobs within the United States, a lower standard of quality, and resentment by those who are living within the United seeing more and more of their jobs going overseas. In 1994, NAFTA (North American Free Trade Agreement) was passed by then President Bill Clinton. His goal was to open the trade routes to all countries. Unfortunately, it led to many plants moving across the borders to Canada and Mexico. While outsourcing had begun in the 1980s, it grew by leaps and bounds in the latter part of the 1990s. Jobs went overseas to China, Japan, and India and the economy began to falter as American's lost their jobs and suddenly faced living on minimum wage as higher paying jobs went to these other countries. By looking at the average annual salaries in these other countries, it is easy to understand why companies find it appealing to outsource their business. Especially in China where the average yearly salary is significantly lower than their American and European counterparts. • China - $1,290

• India - $14,500
• Japan - $17,000 to $50,000 (this depends on the region) • Mexico - $9,000 to $16,000 (this depends on the region) Outsourcing U.S. jobs to these areas are allowing many formerly poor areas to increase their standard of living. Meanwhile, citizens of developed countries feel it is taking away from many families in those developed countries. Is it fair? Depend on where you live, it is not fair to the workers of developed countries when companies shift work to lower wage countries. However, companies are...
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