Question

why conditioning international trade on a poor country's improving labor and environmental standards to US levels is counterproductive?

Answer 1

The United States has been the pioneer of manufacturing process and has always helped in developing the best technologies which has largely been the reason for its rapid growth and overall development.

The world as we know it know is largely contributed due to the development of the internet as a medium of communication and has largely helped in overall development of the world. The contribution in this matter of the United States and the overall development of manufacturing techniques has largely helped the entire globe and has reduced costs of many activities such as banking and insurance effectively.

On the other hand, the United States has been extremely active in improving the working conditions in collaboration with World Organizations to help other countries have similar growth trends respectively. These include Asian counterparts such as India and China.

But, undeniably this has started to effect the United States counter productively in the long run now. With increased quality of labor and working conditions most companies including those from the United States are also turning over to these countries for shifting their overall production base even if it meant getting heavily taxed at home.

This happens because, even when the quality of the workforce has been increased, the overall costs have been low since there is a sizeable population. Once skills are imparted and people are ready to work at a relatively lower cost, The Trade for United States turns out to be counterproductive since manufacturing jobs are lost to those countries that have enabled themselves to produce at a relatively lower cost.

Thus the concept of controlled help has come into play where selective development can be done to ensure that the nations interests remain secured as well as overall regional development can take place without any hindrance respectively.

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