Traditional Culture Encyclopedia - Traditional stories - Why is the employment cost so high in developed countries in Europe, America, Japan and South Korea, but the industrial manufacturing industry has not completely disappeared?
Why is the employment cost so high in developed countries in Europe, America, Japan and South Korea, but the industrial manufacturing industry has not completely disappeared?
Quite simply, the profit of an enterprise is the balance of income after deducting product costs and various expenses. In developed countries, their employment costs are high, so they can raise product prices or improve operating efficiency to maintain profit margins. Moreover, developed countries have high per capita income and are fully capable of consuming goods after price increases. Enterprises pass this part of the cost on to consumers through price increases. How does the enterprise realize profit disappear?
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