Competitiveness, Not Offshoring, Is EU Weakness

Data show the euro zone's failure to keep up with tech change, and its poor innovation rate, pose greater problems than cheap foreign labor

Many people fear that the availability of cheap global labor in our increasingly integrated world economy—or "globalization,"—is prompting companies to relocate production abroad. Yet a recent study by the European Commission (EC) suggests that high labor costs aren't so much the problem as the European Union's failure to cope with increased international competition and an accelerated speed of technological change.

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