Shocker: IMF Finds That Opening Economies To Trans-National Corporations and Elites Worsens Inequality

``The impact of the loss of bargaining power may be more severe for workers in advanced economies than in emerging market economies for two reasons. First, companies in advanced economies may be in a better position to make a credible threat to relocate abroad--where wages are lower. Second, in many emerging market economies capital is scarce relative to labor. The arrival of foreign investment capital can raise the demand for labor, mitigating some of the effects of the relative change in bargaining power due to the opening of the capital account.­''