Economic exchange is an important tool for promoting economic growth. However, contrary to expectations, the intensification of economic exchange in America, following free trade, has had a negative impact on wage rates. Consequently, as free trade extends to non-American economies, converting the entire world into a global village, the impact on wages extends to other nations and on the current trend will soon flatten wages around the world to a low level. Deregulation of trade led to the relocation of production to low-cost labor areas, thus gaining complete advantage. In an attempt to compete fairly, manufacturing companies remaining in developed countries try to reduce production costs by reducing labor costs and deteriorating working environment conditions, thus resulting in a race to the bottom. Economists have tried to explain this phenomenon, proposing solutions to the controversy. To begin with, economic growth differs from country to country and therefore causes differences in the state of development. As a result, prices differ mainly due to production costs. The United States as a nation offers a clear picture of this phenomenon, with the South less developed than the North. While cheap labor dominates underdeveloped regions, capital accumulation is greater in developed regions. With the aim of maximizing profits, Northern capitalists shifted their investments towards the South to capture available, cheap and trainable labor (Rosnick, 2013). This reduces the demand for Northern labor, causing their wages to fall. Traditional economists; they view investors as rational and therefore the shifting of investment networks should continue until wages in the northern region equal those in the southern region. It's... half of paper... reduction, natives spend a portion of their income. Therefore, their real income is reduced. Therefore, any increase in the domestic price of production in developing countries only affects the nominal wage but not the real wage, thus reducing their currency value. Intuitively, exports to the United States will remain low-priced and therefore in strong competition with locally produced American goods. Simply put, although economic exchange is a necessity, its intensification leads to “a race to the bottom.” The underlying material facts are that different economies in different states of development cannot be linked by a similar set of rules and regulations. The repercussions are that investments flow to underdeveloped areas characterized by cheap labor. in response, developed economies will lower wages and reduce the effectiveness of workers' rights, which will result in a deterioration of working conditions.