1. Companies can hire overseas. There's some cost to it in terms of added friction, but if wages rise enough in C1, then it's worth the friction to hire in C2 instead.
2. Workers also consume and invest, raising demand for other jobs. Employment is not a zero sum game, especially at the macro scale.
1. Companies can hire overseas. There's some cost to it in terms of added friction, but if wages rise enough in C1, then it's worth the friction to hire in C2 instead.
2. Workers also consume and invest, raising demand for other jobs. Employment is not a zero sum game, especially at the macro scale.