What effect does the low cost of labor in China have on my bank account?

What effect does the low cost of labor in China have on my bank account?

Jordan Goodman (Personal Finance Author) gives expert video advice on: How can Wal-Mart sell so cheap?; What effect does Wal-Mart have on the small businesses?; What effect does Wal-Mart have as a business model? and more...

The low cost of labor in China affects you in many ways. You are competing as an employee against people you never see in China, and there's a lot of things that you might think could never be done in China or in India that in fact can be. For example, radiologists that read x-rays, those can be done in India, they can send your x-rays by e-mail and have people read it and get back the results. That does not have to be done locally. Tax preparation, in many cases being done in India and other places like that. So, certainly telemarketing and having call centers are happening throughout India and the Philippines and other places as well. So lots of jobs that you thought might never be able to overseas today are being shipped overseas. So for the American worker who's expecting a certain wage rate, certain benefit rate, he's not going to be able to get that anymore if the same work can be done at a much cheaper price in India, China or other developing world countries.