This creates the contradiction in our distorted form of globalization. Higher wages are usually a good thing in a closed economy because they boost demand for businesses while at the same time increasing their incentives to invest in productivity-enhancing systems.
This creates the contradiction in our distorted form of globalization. Higher wages are usually a good thing in a closed economy because they boost demand for businesses while at the same time increasing their incentives to invest in productivity-enhancing systems.
In an open economy, the whole point of beggar-thy-neighbor policies is to subsidize production at the expense of consumption and to export to one's trade partners, in the form of a trade surplus, the consequence of the rising domestic gap between supply and demand.
In an open economy, the whole point of beggar-thy-neighbor policies is to subsidize production at the expense of consumption and to export to one's trade partners, in the form of a trade surplus, the consequence of the rising domestic gap between supply and demand.