Brief Economic Analysis
NICs usually benefit from comparatively low labor costs, which translates into lower input prices for suppliers. As a result, it is often easier for producers in NICs to outperform and outproduce factories in developed countries, where the cost of living is higher, and labor unions and other organizations have more political sway.
This comparative advantage is often criticized by advocates of the fair trade movement.
Read more about this topic: Newly Industrialized Country
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