pauper labor argument

Definition

Economics

  • The view that a country loses by importing from another country that has low wages, presumably by lowering wages at home. This view ignores the fact that low wages are due to low productivity, and that the high-wage home country, with high productivity, will have comparative advantage in some products and will gain from trade.
http://www.dictionarycentral.com/definition/pauper-labor-argument.html