Barbie and the World Economy - 0 views
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Tisha D on 25 Nov 13This article is about the trade relation between China and USA and the manufacture and export of Barbie dolls. These dolls sold in the States for 9.99$ fetches each Chinese woman manufacturing them, only around 35c. This is a classic example of China exporting cheap labor. And this cheap export is causing the trade deficit between China and USA to increase even further, in favor of China. As China has cheap labor, it is much more economical to manufacture these dolls here than in USA. Consumers too would be against buying more expensive goods when there is a cheaper alternative. Thus China keeps providing cheap labor an USA keeps becoming more in debt.