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Domestic producers often base their claim for import protection in the fact that workers in country X are paid substandard wages. Is this a valid argument for protection? Can you give examples of when it did/did not work? Is there any trade restriction that the US government could impose that would have a negative/positive impact on your organization? Explain. 300 words

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Domestic producers often base their claim for import protection in the fact that workers in country X are paid substandard wages.

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Yes, this is quite a valid argument for protection as differences in cost of production is primarily due to low cost labor in nations such as India and China. The American companies pay higher labor cost and thus, unable to match the cost structure of these low cost nations. The wage levels vary from one country to another and the companies in low cost nations take advantage of low cost in their countries to produce goods at ...

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Sheetal Jain, PGDM
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  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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