Global Production and the Labour Market
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The share of trade in world GDP has been increasing with a shift from ..... to manufactured goods and a growing importance of intermediary goods as a result of outsourcing.
This increase in outsourcing has been accompanied by rising income inequality (25% of which is ..... to outsourcing) and historic high rates of profits and profit share.
To ..... greater gains from trade, countries are seeking to increase their value-added position as they expand their industrialization, but have often found difficulty in upgrading.
The newly industrializing Asian countries have had success in upgrading, whereas Latin America and .....-Saharan Africa have had difficulty (e.g., Mexico has been able to expand exports but only with a small amount of value-added).
China's rapid rise ..... an additional threat for most developing countries outside of Asia that have had trouble upgrading.
The 1990s saw only a ..... growth in per capita income outside of Asia and a rise in income inequality within countries as a result of the Washington Consensus of export-led manufacturing growth, deregulation, and liberalization.
And as China participates even more fully in the global economy, developing countries will not be able to compete with China's abundant supply of cheap labor and developed infrastructure and will therefore be ..... affected.
The increased market linkages that now characterize the global economy have caused considerable product and labor market .....: many industries are now characterized by oligopolies on top and increased supplier competition at the bottom.
It is an endogenous process that is sustainable because of barriers to entry on the top, an abundant supply of labor on the bottom, and the entry of more firms on the ..... level even though many industries already have excess global capacity.
This has led to a value-added ..... for developing countries that face obstacles to industrial upgrading, pressure downstream to keep prices low because of low margins, and pressures on labor markets to keep wages low.
