The progress of China to take cost advantage of Labor

Azam Faghihi¹ Golnaz Abedini Teflisi² Mahnaz Rabiei³ Alireza Sadeghianfar⁴

1) MSc student of Department of Business Management, Faculty of Management and Economics ,Science and Research Branch, Islamic Azad University, Tehran, Iran.
2) MSc student of Department of Business Management, Faculty of Management and Economics ,Science and Research Branch, Islamic Azad University, Tehran, Iran.
3) Assistant Professor of Department of Business Management, Faculty of Management and Economics ,South Tehran Branch, Islamic Azad University, Tehran, Iran.
4) Tutor of Department of Civil Engineering, Faculty of Engineering, East Tehran Branch, Islamic Azad University, Tehran, Iran.

Publication : 2nd International Conference on Management and Humanities(2icmhconf.com)
Abstract :
The consequences of long time free trade analysis, the impact of competition in the production analysis, the agricultural policies and tax effects analysis in recent years due to healthy economic growth has become one of the most important and popular issues for policy makers and economists. In this article we have tried to analyze and articulate, cost advantage, comparative advantage, absolute advantage, the cost of labor force etc. and also numerical examples with different assumptions are described to explain China’s status with a view to global free trade. Additionally we explain annual minimum wage increase policy in this country and how it will be according to the market situation and global trade issues and at the end we discuss about China’s labor cost advantage and its comparative advantage compared to other countries, especially America.
Keywords : Cost advantage Cheap labor China s rise The World Trade Organization