Cheap labour
The raw materials for many goods consumed in richer countries are produced and collected in poorer countries. They are imported to richer countries to be processed and sold. Producers get a small fraction of the final price. Countries affected by the tsunami provide important raw materials such as Thai iron and steel, Sri Lankan tea and rubber, and Indonesian wood.

Certain goods, though, are increasingly processed by Western transnational companies in low wage, poorly unionised, economies. Using local sub-contractors, companies such as Nike, Adidas, Levi Strauss and Gap produce footwear and clothing very cheaply in South Korea, China, Indonesia and Sri Lanka. The goods are then sold for much greater amounts in the high street stores of richer countries.

Certain goods, though, are increasingly processed by Western transnational companies in low wage, poorly unionised, economies. Using local sub-contractors, companies such as Nike, Adidas, Levi Strauss and Gap produce footwear and clothing very cheaply in South Korea, China, Indonesia and Sri Lanka. The goods are then sold for much greater amounts in the high street stores of richer countries.

