Such practices put competitive pressure on wages across borders, and contribute to the polarization of wages, because the benefit of increased profitability would accrue mostly to top management or highly-skilled professional workers. Meanwhile, some multinational firms might go one step further and directly play one country’s workers against another’s.
These  8  BIS central bankers’ speeches  firms might threaten to leave a country and reestablish themselves in another with cheaper wages, thereby extracting concessions from existing workers. This would exacerbate polarization by lowering the wages paid to manual labor or low-skilled workers.