Question

Unions in developed nations often oppose imports from low-wage countries and advocate trade

barriers to protect jobs from what they often characterize as “unfair” import competition. Is such competition “unfair”? Do you think that this argument is in the best interests of:

(a) the local companies, (b) the workers
(c) the consumers

please answer with harvard referencing without plagiarism. thank you very much.

Answer 1

The developed nations are not in favor to import goods from the underdeveloped countries because are in a view that if they import goods from the low-wage countries then it will hamper the business of their own industries. They think so because, the base of the developed countries are the industrial units for the protection and development of their domestic industries. They oppose the trade policies to buy goods from the underdeveloped or less developed countries. Their motive is to give final goods at higher prices to the underdeveloped or less developed nations.

This policy is against the consumer of developed nations because the products imported from the least developed countries or underdeveloped countries are of the lesser prices as compared to the developed nations. It becomes more convenient for the consumer to purchase the goods at low price but the developed countries do not allow the goods from low wage countries which results in consumers purchasing the goods at a higher price in their own country.

This policy is truly in favor of the local companies and units. The restriction on import of the goods from low-wage countries bring them in a state of profit. When the consumer is bound to purchase the domestic products at higher rate than that of the less developed countries, the domestic companies experience more profit.

The worker of the developed nation experience a good wage rate working in their own country. But the workers of the less developed nations are much cheaper than that of the developed countries. So, at this point the producers of the developed nation experience a slight burden of capital as the worker of their country are expensive.

A greater benefit to the developed nations with the oppose of import from the less developed nations is that the money generated is within the boundaries of the nation. When the there is domestic production, consumption as well as labor then, the profit generated by the production units, wages of the workers, money spent by the consumers circulates within the country.