ABSTRACT
We discuss the New International Division of Labor in the next section in the context of low-cost labor. However, a more positive slant argues that globalization is not just leading to a move of low-cost manufacturing jobs to other parts of the globe:
Trickle down wealth has eroded wage differentials between advanced and advancing countries. For example, in South Korea real wages have risen eightfold since 1977. Wages paid by foreign firms in Turkey are 124 percent above the national average. Workforces in Turkey in foreign owned firms are expanding by 11.5 percent a year compared to 0.6 percent a year in local domestic owned firms (The Economist, 2000a).
