Cheap Labor Sources

Definition

Cheap labor sources refer to places where employers can hire workers at lower wages compared to other regions due to economic conditions, cost of living, or lack of regulations.

Analogy

Imagine shopping at a discount store versus a high-end boutique. The discount store offers similar products (in this case, labor) at much lower prices than the boutique. That's what cheap labor sources are like for businesses - they get the workforce they need but at a lower cost.

Related terms

Outsourcing: This is when companies contract out certain tasks or services to external agencies, often because it's cheaper. It's like choosing to buy from the discount store instead of making purchases from expensive boutiques.

Minimum Wage Laws: These laws set the lowest pay that employers can legally give their employees per hour worked. If there were no minimum wage laws, some stores might sell goods even cheaper than discount stores!

Sweatshops: These are workplaces where employees work long hours under poor conditions for low wages. It's like the clearance bin at the discount store - prices (wages) are extremely low, but so is the quality of conditions.