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In China, labour- and land-intensive industries such as manufacturing are what gives the country a comparative advantage in. This is why many foreign firms like Nike and Foxconn choose to locate their productions in China- to lower their cost of production and maximize revenue .

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Country’s move their businesses to China so it’s cheaper, as they won’t have to pay high wages. And the government in China put in place that they will get reduced tax when businesses are moved there. It means they gain more money and spend less.

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