Has the relocation of large factories from highly developed countries to countries with cheaper labor costs caused unfavorable situations of rising unemployment in some regions in your countries?
It turned out that from the global financial crisis of 2008, those countries in which the domestic industry was more developed faster.
Some industries, including large factories, have been expatriated to countries with cheaper labor costs.
For a corporation that decides to move such assembly plants, it is a business goal of saving labor costs.
However, in the city from which this factory emigrated, unemployment is rising. If it was a small town and the factory was the main employer, the problem of a significant increase in unemployment on the local market arose.
In some countries, restrictions have been introduced to limit the scale of this process of emigration of large production factories and sometimes entire branches of the economy to other countries.
How do you feel? Should the governments of individual countries regulate these issues, should liberalization be in this matter or should it be under the control of the state, i.e. the government of a given country?
Please, answer, comments. I invite you to the discussion.
No in case of Nepal, labours are flexible and labour unions strong to do collective bargain. So it is not easy to shift. In India, unemployment is high of all most all state except Gujarat,Maharashtra and few.so labours are easy to shift and work at low rate also.
In short term, factory relocation to developing countries will cause high unemployment rate in developed countries, especially in certain city/regions. Business consideration is purely their main reason to relocate. On the other hand, it is not easy for workers to move to another country. At least they have to consider many social/ family aspects and requires longer time. The solution is they move to other city/ region that still have job vacancies. Fortunately, due to low birth rate and high rate of migration among developed countries, the unemployed workers can get job in a relatively short period. Thus, the unemployment rate in long term will relatively low.
To answer your question, it depends on nature of economy, whether it is industrial, agricultural, developing , emerging or developed
I believe that is not more than 1% of causes of high unemployment rates in most developing countries.
Best wishes
Prof. Nabeel Aljanabi
Si, este fenómeno se ha visto en mi país para el caso de la mano de obra especializada. Pero en cuanto a la mano de obra no especializada, el fenómeno debería ser inverso.
