The free market isn't so free.

[Robert]

Free market Capitalism in the global market is a race to the bottom. It thrives on exploitation throughout the world. This is primarily why we have unemployment here in American.

[Kyran]

The bottom in this case being a communistish country.

If the global market was pure capitalism the bottom would constantly be rising. Country A exports labour and manufacturing to Country B. This in turn increases the wealth of Country B by improving it's currancy while diminising the value of Country A's currancy. Eventually it will no longer be profitable for Country A to outsource work to Country B so they'd swap to Country C (or go back to working inhouse). Rinse and repeat a couple of times and everyone is better off (except Country A).

Of course that doesn't happen because the main country which manufacturing is exported to is not truely free market. Their government keeps their currancy artificially low so that they can remain the outsource capital. What would happen if they didn't do that? Their average worker could be better off (businesses would have to focus on the local market rather then the foreign, and the possiblity for importing goods would be increased). However, no one would outsource jobs to them anymore (it wouldn't be profitable). Would a US business export jobs overseas if - after converting currencies - foreign labour cost the same as local labour?

[phkrause]

Would a US business export jobs overseas if - after converting currencies - foreign labour cost the same as local labour?

Absolutely not, they would never even think twice or once about going overseas. But that's not the only reason they go overseas. They go to avoid taxes would be the other.