How the Economics Interests Affect Labor Market Which Leads to the Different Economic Climate Between America and China
This paper emphasizes on the labor market and its effect on the different economic environment. In this research paper, the results of the labor market on the economy of China and America have been discussed. The influence of commercial interests on the labor market has been focused on in this paper. The labor market deals with the country’s workers who agree to sell their working hours for a fixed period to an employer. Labors are considered as the factor which can be exploited in the market. The importance of the labor market has emerged from the concept of economic scarcity that arises from the maximization of utility by the individuals.
In their article, the researchers, Blumstein and Joel, have explained the concept of economic interests, which affects the labor market and results in different industrial environments. The researchers have demonstrated the above-stated research question with the idea of a sweatshop in which the researchers have mentioned that the value and the demand of the labor in a particular economy increase with the increase for the goods that are produced by the workers (Blumstein and Joel 27-42). The researchers, Carvalho, Makoto, and Yukiko, in support of the above researchers, have cited an example for explaining the concept. They have demonstrated that the developed countries of the world, for example, America, mainly depend on China for the production and manufacture of its clothes, toys, etc. since the cost of labor is cheap in China as compared to the cost of energy of America. Therefore, it facilitates America in reducing its cost of production by importing clothes and toys from China. The researchers emphasized that in this situation, the economy of both countries is gaining an advantage. America is reducing its cost of production, and China is generating revenue from its export. As a result of the increase in demand for toys and clothes in China, the need for workers has increased, which has increased wages. Unions are formed to safeguard the laborers’ rights, and they engage the workers in collective bargaining (Carvalho, Makoto, and Yukiko 14-35).