K
Ka Pilo
Why is it that the raw materials from Third World countries are cheap when bought by First World countries? And why is it that finished products sold by First World countries are very expensive?
Why is it that the raw materials from Third World countries are cheap when bought by First World countries? And why is it that finished products sold by First World countries are very expensive?
Because of the processing cost? Or the value of money?What do YOU think?
Stijloor.
Because of the processing cost? Or the value of money?
Simplistic in that the elephant in the room is cost of labor in any given country, in addition to the location of where raw materials are most abundant, not to mention available technology in any given country.Just take a quick look at these links to help understand
Supply_and_demand
Supply-side_economics
Demand_side_economics
Supply_(economics)
Simplistic in that the elephant in the room is cost of labor in any given country, in addition to the location of where raw materials are most abundant, not to mention available technology in any given country.
Simplistic in that the elephant in the room is cost of labor in any given country, in addition to the location of where raw materials are most abundant, not to mention available technology in any given country.
But the Chicago school would agree with the basics you cite.
A good read: Adam Smith's The_Wealth_of_Nations