Lower wages are an important paramater for companies to move their production elsewhere. Such production moves often result in an increased negative impact of that company on the environment, and often involve worsened labour conditions of the workers (the work conditions in cheaper/less regulated countries are often worse than those in more expensive/more regulated countries).
Other important factors for companies to move their production are ease of distribution/transport of their product within the country, taxes, ...
As can be seen in the schematic, there are fairly great differences in regards to the minimum wage depending on the country, meaning that moving production to another country is a tactic frequently employed in practice by companies. One way to counter this would be to level the wages internationally to only one wage. This wage probably needs to be on the high to medium price range so as to make it economically unattractive for companies based in countries with high wages to move their production abroad.
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