ABSTRACT
sews this into shirts in the Philippines. Then labour in Britain may have more bargaining power when it is part of the wider operation encompassing the Philippines, other things being equal (for example, because a strike in Britain would cause disruption in the Philippines by stopping work there once any stock of cut cloth is exhausted). But introducing these other comparisons does not undermine our divide and rule analysis; the point of our analysis is to focus on the activities of a particular firm and compare labour costs when those activities are carried out in one versus more than one country.
