<p>They <strong>mention low-high wages countries</strong> due to the following common narrative on trade and inequality:</p>

<ul>
<li>Globalization allowed low-wage countries to export more labor intensive goods to high-wage countries.</li>
<li>Less skilled workers in those high-wage countries faced import competition and lost their jobs.</li>
<li>Bottoming out of the middle class and rise in inequality.</li>
<li>Leading to a backlash against globalization.</li>
</ul>

<p>This common narrative suggests development of low-wage countries has come at the expense of low skilled workers in high-wage countries. This narrative has been investigated in many papers and surely in your book!</p>

CC BY-SA 4.0
2020-04-23T08:33:22.590Z
2020-04-23T08:33:22.590Z
emeryville
<p>I was reading a book that asked this question. "Does trade with low-wage countries depress wage rates in high-wage countries?"Why did they mention specifically low-high wages countries?</p>

<macroeconomics><international-trade>
Why would a low wage country affect negatively the high wages of a country with trading?
Tacitus Cornwall
# Why would a low wage country affect negatively the high wages of a country with trading?

(Asked by: username_0 on 2020-04-22)

I was reading a book that asked this question. "Does trade with low-wage countries depress wage rates in high-wage countries?"Why did they mention specifically low-high wages countries?

**Tags:** macroeconomics, international-trade


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## 1 answers

### Answer by username_1 on 2020-04-23. Score: 1 | Accepted answer

They **mention low-high wages countries** due to the following common narrative on trade and inequality:

* Globalization allowed low-wage countries to export more labor intensive goods to high-wage countries.
* Less skilled workers in those high-wage countries faced import competition and lost their jobs.
* Bottoming out of the middle class and rise in inequality.
* Leading to a backlash against globalization.

This common narrative suggests development of low-wage countries has come at the expense of low skilled workers in high-wage countries. This narrative has been investigated in many papers and surely in your book!


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