However, another very dramatic feature of globalization is that it has brought more than a billion new workers into the global economic system from China and India. Some observers claim that through its sales of low-cost goods, developing Asia – and especially China – has been "exporting deflation" and will continue to do so until wages in these countries rise.
Although this effect, too, is plausible, research suggests that its importance should not be exaggerated. If China were truly exporting deflation, the effect should be evident primarily in the behavior of import prices.