Southeast Asia Wage Dilemma: Why Is There Such Division?

The video discusses the role of cheap labor in Southeast Asia's economic boom and the challenges posed by worker protests demanding higher wages. It highlights the productivity differences between countries like China and Vietnam and the impact of wage increases on competitiveness. The video concludes by noting that if wages rise without corresponding productivity gains, companies may relocate to cheaper regions.

What has been a significant factor in the economic boom of Southeast Asia?

• Agricultural exports

• Tourism

• Cheap labor

• High technology exports

Which countries have seen recent worker protests demanding higher wages?

• Thailand and Malaysia

• Vietnam and Cambodia

• Brunei and Laos

• Philippines and Singapore

How does the productivity of a worker in China compare to one in Vietnam?

• Equally productive

• Seven times as productive

• Three times as productive

• Twice as productive

What might happen if wages increase without a corresponding rise in productivity?

• Stable economic growth

• Increased company profits

• Higher employment rates

• Factories may relocate to cheaper areas

What was the reaction of manufacturers when wages in China rose to levels seen in Mexico?

• They reduced wages

• They hired more workers

• They relocated their factories

• They increased production