The quick response to this question is that countries like Canada are not competing for low labor cost advantages that emerging markets such as India and China have. Moreover, the low-cost advantage is not sustainable to the rapid developing countries including India and China. However, these countries still encourage the growth and development of labor-intensive industries (Freeman, 2006). The labor-intensive industries are critical in these developing economies since the development and growth of these economies still depend on these industries. The reason is that the countries cannot support heavy capital investments that are required in capital-intensive industries. Moreover, these industries also play a major role in preserving social stability. Labor-intensive industries also support the huge population present in these developing economies as labor-intensive industries absorb more workers but at a reduced wage rate compared to the capital-intensive industries, which are supported by technology (Auer, 2010). The developing economies will still take more time to transform their economies from labor-intensive industries to the modernized capital and technology-intensive industries. Conversely, Canada is capital-intensive oriented country. The Canadian industries have been supported by capital and technology for a longer period (Isgut, 2006). In addition, the Canadian economy is supported heavily by the capital-intensive industries, which they export to other countries particularly the developing economies. At the international stage, the developing countries’ capital and technology-intensive industries cannot compete with capital-intensive industries from Canada and other developed countries. The countries such as China and India to develop economies that are sustainable in the end, heavy investments must be made on those industries that are capital intensive. In fact, low wages are indications of underdeveloped financial and societal infrastructures. Many firms in the emerging economies are still operating in the low-cost principles. The low prices they offer provide substantial benefit to the consumers. The reason is that most of the consumers in these economies earn low wages and spend more significant part of their income on basic needs (Auer, 2010). The low cost principle is encouraged as it is perceived as an income subsidy to the low-income earners. Firms operating under the premise of low cost are greatly encouraged to establish in the developing economies. The low-cost operating firms greatly affect the other stakeholders particularly the suppliers. They ensure that the procured prices are low, forcing the suppliers to behave differently. The low-cost firms have a greater influence on the suppliers who believe that they have to produce at low cost to meet the demand of the firms (Isgut, 2006). Moreover, firms that supply low-cost retail firms in the developed economies move their operation in countries such as China and India in order to meet the demands of the home country firms. Even though production cost is reduced in the developing economies, studies indicate that trading with emerging market economies such as India and China does not influence the world prices. The studies further reveal that the trade does not sort out both the demand and supply shocks at the international