81.   This has accelerated growth in many developing countries, particularly in Asia, and exposed the economies of richer countries to direct competition from countries with lower labour costs.

82.   Their report notably recommended reducing labour costs, notably for those with few qualifications, in line with the situation in the United States.

83.   This is usually taken to mean that Germany is increasingly handicapped by high labour costs and labour regulations.

84.   They also complain that Renault is seeking to take advantage of differences in labour costs in the European Union.

85.   They will also carefully examine the implications of the changes on taxation regimes, exchange rates, transport arrangements and labour costs.

86.   To remain competitive in view of the appreciation of the yen, Japanese clockmakers have been forced to relocate assembly lines to countries where labour costs are lower.

87.   It has been cautious about production of microchips in China but lower labour costs there were imperative for the company to secure profits, the report said.

88.   It has also increased production at its Chinese factories to benefit from cheaper labour costs.

89.   It said the strong yen and high land and labour costs were making it difficult for foreign firms to invest in production facilities in Japan.

90.   Labour costs represent only two to four percent of the total manufacturing cost of a pair of shoes, they said.