The World Bank defines high-income nations as having a gross national income of at least $12,536 per capita. in 2019 (World Bank 2021). (Note that the classifications will always lag by a couple of years so that analysts can evaluate the true income of the nations.) Examples include Belgium, Canada, Japan, Oman, Puerto Rico, and the United States.
High-income countries face two major issues: capital flight and deindustrialization. Capital flight refers to the movement (flight) of capital from one nation to another, as when General Motors automotive company closed U.S. factories in Michigan and opened factories in Mexico.
Deindustrialization, a related issue, occurs as a consequence of capital flight, as no new companies open to replace jobs lost to foreign nations. As expected, global companies move their industrial processes to the places where they can get the most production with the least cost, including the building of infrastructure, training of workers, shipping of goods, and, of course, paying employee wages. This means that as emerging economies create their own industrial zones, global companies see the opportunity for existing infrastructure and much lower costs. Those opportunities lead to businesses closing the factories that provide jobs to the middle class within core nations and moving their industrial production to peripheral and semi-peripheral nations.
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