How does the devaluation of a country’s currency create a market for cheap labor?

by admin on December 28, 2009


If the Venezuelan Bolivar is 10 to 1 to the dollar and it suddenly falls to 20 to 1 it is now half the price to pay workers from Venezuela. It is not necessarily that simple as there are many other factors such as economic stability and inflation to consider in creating jobs in this country.

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{ 1 comment… read it below or add one }

trevor h December 28, 2009 at 8:13 pm

If the Venezuelan Bolivar is 10 to 1 to the dollar and it suddenly falls to 20 to 1 it is now half the price to pay workers from Venezuela. It is not necessarily that simple as there are many other factors such as economic stability and inflation to consider in creating jobs in this country.
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