The paragraph that follows is from the 1994 World Competitiveness Report (World Economic Forum, 1994)

"International firms and investors are massively relocating capital to low-wage countries, undermining traditional employment in advanced countries. Meanwhile, hopes that these newly industrializing economies will provide export opportunities and thus alternative jobs for the

displaced workers are a mirage: wages and hence purchasing power in these countries will remain low, both because of the sheer size of their labour forces and because they need to keep wages low to attract a continuing inflow of capital. Thus, workers in the Third World will see no benefit from the process -their economies will achieve high productivity while continuing to pay low wages while those in advanced countries will find their position undermined both by trade deficits and by capital outflows."

Discuss in a couple of paragraphs.