2007-01-26 01:23:15 · 10 answers · asked by Charles R 1 in Social Science ➔ Economics
Despite the answers above, China does NOT have cheap labor because it has a large population. If that were true, then a small country like Guam would have highly paid workers, which it does not!
China has cheap labor because it is not very well developed. Its work force is not well educated, and it doesn't have access to the same technology (factories, machinery, computers, etc.) that a US or UK worker has. Therefore, the value of that worker is less than in a more advanced country.
2007-01-26 01:33:07 · answer #1 · answered by Allan 6 · 0⤊ 0⤋
It's supply and demand. The higher the population, the more people that companies have to hire from. The people living there will work for lower wages because they know that if they demand a higher one, they will be fired and someone will swoop right in and take their job at the low pay rate.
2007-01-26 01:32:24 · answer #2 · answered by sun 3 · 0⤊ 0⤋
Simple answer, 10 jobs and 100 applicants, due to mutual competition , needy person decides to work for less and that's how cost of labour goes down. Unlike county like UK or US where 10 jobs but hardly anyone interested in them or not suitable for the job. Employer pay big money to attract them or job goes to China or India where people are hard working.
2007-01-26 01:34:25 · answer #3 · answered by long_joy_stick 2 · 0⤊ 0⤋
This might also have something to do with the harsh, undemocratic regime in China, which means workers in China get paid a pittance for producing goods which are sold for a great profit in the West
2007-01-26 01:38:49 · answer #4 · answered by hello_world 2 · 0⤊ 0⤋
rising economies 0.33 international Vietnam, Korea, Singapore, Cambodie, India, Brazil, Hong kong, Pakistan, Taiwan, Mexico, Africa, Phillipines, Indonesia, Turkey, Morocco, Romania, Dominican Republic, Thailand, Sri Lanka, Saipan
2016-12-03 01:55:35 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Simple, you need one person for one work and they come 10. After this you have to decide which one to take and on what price.This could be the simple example for the less labour price.
2007-01-26 01:32:32 · answer #6 · answered by MUSICK 2 · 0⤊ 0⤋
Because there are more people to do the job. Therefore, more competition for fewer jobs and employees can manipulate this by paying less.
2007-01-26 01:32:19 · answer #7 · answered by Wafflebox 5 · 0⤊ 0⤋
huh more people.drives down labour cost.ie-if you wont do the job
for a £1 ahour.there are lots more who will.plus a despot country dose help.
2007-01-26 01:45:39 · answer #8 · answered by peter o 5 · 0⤊ 0⤋
basic supply and demand. with more supply (in this case workers) there is less demand, and employers can lower their wages due to the fact that they are not hard-pressed to find a worker.
2007-01-26 01:31:15 · answer #9 · answered by mizzouswm 5 · 0⤊ 0⤋
because if you have one employee that complains about their pay rate you can fire them and find a replacement in a matter of minutes as there are more poorer people who want jobs
2007-01-26 01:31:51 · answer #10 · answered by loopy 2 · 0⤊ 0⤋