The Competition between East Asian and Developed Countries

We know that the most of the people in East Asian countries are working under severe pressure and with very limited income. This increases the immigration from these countries to different places such as Middle East countries due to comparatively higher gain than their native country. However, the people who are staying in their own country should accept the conditions forced by their employers. The laws are in favor of the employers and this situation makes the cost of the companies to be very little compared to their rivals in international markets.

The companies in the developed markets are suffering from these East Asian firms due to their low price. In order to compete with them they try to decrease their costs by mainly dismissing employees. This unfortunately causes unemployment in developed markets. This unfair competition which is affecting all globe, should be corrected by the governments by imposing different types of regulations or legislations. Other than this, if we think that the labor force in East Asian countries has lower or same level of productivity with the developed markets (also I am thinking the same) the quality of the products may not be satisfactory for the customers who are buying these. Hence, if the governments put tariffs and other preventive precautions they will not only protect their economy but also their people from low quality products.

We also know that in some of the eastern countries, the production has been made with unacceptable standards and materials which may give harm to the end users. If I was asked, my recommendation would be not to close the developed economies completely to the goods coming from these countries but to put some limitations and quotas for some of these products. These will keep the economies of the developed markets strong and reliable along with the low unemployment levels, high national income and low current account deficits.