The problem with Max's theory is that it doesn't take into consideration the risk that the entrepreneur takes. In order to create a business, an entrepreneur must find the funds to invest, purchase machinery rent accommodation, conform to all the local labor laws and have an idea of a product that is of value.
Most importantly, if his or her idea wouldn't work and the products won't be purchased, the entrepreneur will lose their investment and would be stuck for life paying his debt to the banks. A worker might lose the job, but he won't be stuck with the debt to the end of his life, but the entrepreneur would,
So, in business, whoever carries the risk gets a reward. The European and American companies were going sound and east, to begin with, because of the labor laws in the States and Europe became so difficult for an investor and entrepreneur that they couldn't compete with cheaper foreign products.
Cheers