Arguments: Reasonable Minimum Wages Essay

Submitted By maya_djuric
Words: 403
Pages: 2

Topic 3 - If a Canadian firm owns a factory located in a foreign country, should Canadian firms pay the same wages in both countries?
Counterpoint: No, since the cost of living in the foreign country is likely to be much less than in Canada therefore the workers do not require as much income.
Argument #1: Paying a factory worker in a foreign country similar wages to a factory worker in Canada would inflate their economy because the factory worker could make a salary similar to a doctors.
Consumer Prices in Indonesia are 48.36% lower than in Canada
Consumer Prices Including Rent in Indonesia are 51.00% lower than in Canada
Rent Prices in Indonesia are 58.09% lower than in Canada
Restaurant Prices in Indonesia are 70.09% lower than in Canada
Groceries Prices in Indonesia are 44.93% lower than in Canada
Local Purchasing Power in Indonesia is 75.86% lower than in Canada

Low paid nurses/ teachers would leave their jobs to join working in a factory because of easier workloads and better hours which would result in ruining the education and health systems of that country
Governments, not companies, set reasonable minimum wages:
Governments have to think about their international competitiveness, and are all too aware that corporations will move elsewhere if labour costs become too high

Argument #2: Outsourcing is much more cost effective, and in order for a Canadian company to be profitable and remain in business they must outsource work to foreign countries.

Apple has to source parts worldwide because similar Car