Quote from denner:
Or how about the higher cost of doing business in the US versus abroad? Remember the wage arbitrage game that the large corps play of re-importing into Western economies has been the profit center for years now. It's very hard to compete in a global marketplace if you are paying US wages (and ancillary benefits) while your competitor might be running some third world labor racket elsewhere.
Absolutely, it drags everyone along. Probably why at some point we will see a reverse in globalization--i.e. more protectionism.