why workers in some countries receive less money for the same labor?

Question

why workers in countries in development or in undeveloped countries receive much less money for the same labor?

Answer 1

Has to do with the laws of the country and the cost of living. Some countries have a lower cost of living. $2.00 an hour to them is a lot of money.

Answer 2

First of all, while the answer about paper money being worthless makes some valid points, ignore the part about gold and silver being real wealth. You can't eat gold. Gold doesn't keep you warm. You can't drive gold to take you from Boston to Portland. While it may have some intrinsic value in terms of electronics, gold and silver derive most of their value in the same way paper money gets its value - it's used as a means to make trade for other items easier.

As for why laborers in undeveloped countries get paid less, think of this example. In country A, there is one person who makes counterfeit money. In country B, there are no counterfeiters. The counterfeiter in country A has more money than he knows what to do with, so he can afford to pay the people in country A a lot. The people in country B have to settle for less.

Of course, it doesn't have to be counterfeiters in country A. It could just be a business in country A that is really successful (such as an oil producer), and thus can spend more money to pay other people. It could also be the case that country A has a lot of banks, investment firms, and other financial services, which in some cases almost borders on being in the business of counterfeiting money.

It is a fundamental characteristic of capitalism that because the rich have more money to spend, if you're working for a rich man instead of a poor man, you will be paid more for the same labor. This is why there are so many luxury goods in the stores of wealthy neighborhoods while at the same time, the poor have very few businesses being started to provide for them. There's less profit in serving the poor.

Answer 3

Competition.

What Westerners don't realize yet, is that their currency is made of paper and has no intrinsic value. And that they and their western countries are bankrupt. Westerners were induced to live beyond their means by excessive "usury". In short, Westerners borrowed (i.e. printed paper money) in order to maintain the value of the paper money via military strength and covert operations. For example, we installed puppet govts in Saudi Arabi to insure that all oil would be priced in dollars, so that all other countries are dependent on dollars to run their economy (nothing happens without oil).

It is amazing the level of ignorance on this subject. For example, people who think that underdeveloped countries have lower wages because they don't have as much "usury" as we have. It is exactly the opposite. We are headed for a crash, just as any excessive debtor does. The poor countries are headed up, because they don't yet have excessive debt (on an individual basis), e.g. China has 30% savings rate, $1 trillion in reserves, whereas 2005 was the first time savings rate turned NEGATIVE in entire history of USA. And it is an increasingly NEGATIVE percent. The fat lady has sang. The game is over. The last fool to try to buy gold & silver, won't be able to find any at any price.

Wages will equalize over next decade or two, with West coming down towards the equivalent of 1 silver dime per day in wages (as it was throughout history).

===
Add: the answer below which equates the value of paper money with value of gold & silver, doesn't understand the law of supply & demand. Paper money has unlimited supply. Gold & silver have a very rare, limited supply:

http://silverstockreport.com/email/The_Money_Chart.html

Money is not supposed to be "used" and depreciated like a car or food. It is suppose to retain it's value (that why it's called "money"):

http://www.kitco.com/ind/Watson/may182006.html

Educate yourself please.

Answer 4

You said "Underdeveloped countries" and that itself is the answer to your question in the first place. How? These labourers receive less money because first of all their country is not economically sound like US or UK or Canada.The money value of these countries are far less as compared to the US/Canadian dollar or UK's pound. Secondly, exploitation by employers is quite a common practice in those regions and they make huge profit by exploiting these innocent helpless people who has barely any education or are mostly illiterated. Thirdly, most of the underdeveloped countries are poor and abundant in population so they have no difficulty getting cheap manpower (labour) for any kind of manufactures. Also as said earlier, due to the over population the unemployment problem is very acute in these countries which compels these poor people to stick to one job even if it pays less and on the other hand employers stack huge money in their pockets. Actually, US is also one among them and has been saving lot of money on the manpower by including China and other sounth asian countires in it's billion dollars manufacturing projects.

Answer 5

It goes with the supply and demand. In this case, there is a large supply of workers (or overpopulation) yet there aren't enough jobs to have everyone employed so people have to either settle for less $$$ or not get the job and go hungry and the next guy next to them will take the job. That is why all of our clothes and toys and furniture say "Made in China".

Answer 6

I know that in this country there is a different wage paid for the same job. If you are a female, you know it, too.
Very same job, different pay scale, different promotions, etc.

Answer 7

In classical economics, two economies that trade with each other will tend to see their wages for comparable services equalize.

Answer 8

The more people you have and limited jobs available,lower pay scale!

Answer 9

because living cost are lower, or because there is no minimum wage.

Answer 10

Because their governments allow it...