In Europe many of our daily used products are made in Asia. They are cheap because social and ecological costs of production are not included in the prices. For example:
(a) Social externalities of production: Outdoor air pollution is linked to 1.2 million premature deaths in China in 2010 according to a new summary of data from a scientific study on leading causes of death worldwide. This means the loss of 25 million healthy years of life from the population. Outdoor air pollution was the fourth-leading risk factor for deaths in China in 2010, behind dietary risks, high blood pressure and smoking.
(b) Ecological externalities of production: According to China’s Ministry of Environmental Protection the cost of environmental degradation in China was about $230 billion in 2010 – 3.5 percent of the nation’s gross domestic product. This is three times that in 2004.
Wong, E. (2013). Air Pollution Linked to 1.2 Million Premature Deaths in China. The New York Times. Available at http://www.nytimes.com/2013/04/02/world/asia/air-pollution-linked-to-1-2-million-deaths-in-china.html
Wong, E. (2013). Cost of Environmental Damage in China Growing Rapidly Amid Industrialization. The New York Times. Available at http://www.nytimes.com/2013/03/30/world/asia/cost-of-environmental-degradation-in-china-is-growing.html