After the fall of communism, most of the countries in Eastern Europe started from low economic bases, low gross domestic product per capita and low wage scales.

WSJ: For Sale: Eastern Europe | WSJ.Money Summer 2013

In short, if the Nokia expert is right about the low labor cost component in its products, Apple could easily raise its prices to pay those Foxconn workers a higher wage without losing market share or its gross margin.

FORBES: Five Biggest Challenges for Apple in China

As welfare costs have swollen, non-wage labour costs have shot up too, from 36% of gross wages in 1990 to a painful 42% last year.

ECONOMIST: The sick man of the euro