Comment on the given scenario

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According to the World Competitiveness Report 1994, with freer markets, Third World nations now are able to attract capital and technology from the advanced nations.

As a result, they can achieve productivity close to Western levels while paying low wages. Hence, the low-wage Third World nations will run huge trade surpluses, creating either large-scale unemployment or sharply falling wages in the advanced nations. Comment on this scenario.

Reference no: EM131278562

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