Needless to say that corporations are pressured by the Wall Street to make positive ROI. Therefore, most, if not all US corporations have relocated their production to the third-world countries. Especially, in the Southeast Asia region. This outsourcing production, not only embraced by labor-intensive industry, such as shoes companies, but also by other industries. Starting in the 1980’s, and based on core-competency hypothesis, the US and corporations from developed countries justified their production relocation to the so-called cheap-labor countries. This strategy was seen very logical because the investors from the home countries have to finance the fixed assets related to manufacturing facilities such as machineries, land and above all have to deal with the home-country labor regulations. Often, this so-called join-venture are welcomed and enjoy the tax-holidays for years.

As the home countries developed their economy, and more economics opportunities were opened, more and more workers have alternative choices and start realizing their bargaining power. Therefore, after 40 years, labor are no longer cheap as it was in the past. As labor cost increases, not only that it causes higher production cost, but also lower the bottom line. Therefore, to meet the Wall Street’s expectation, corporations were forced to increase their selling price in the US market which finally causes inflationary condition to the economy. Folks needs to remember that they have enjoyed the cheap-price because the developing countries workers have absorbed those price increases in their own-hand. Without them, the US inflation could have happened many years ago. Forty years in the making is just awfully long period, where they–the workers from developing countries such as in the Philippines, Laos, Bangladesh, India, Vietnam or Indonesia and others have to shoulder price increases in the US consumers market.