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But it appears their secret sauce is not dual pricing, but horizontal and vertical integration in manufacturing, combined with low labor costs. Same thing the U
by AstralStorm 1y ago
But it appears their secret sauce is not dual pricing, but horizontal and vertical integration in manufacturing, combined with low labor costs.
Same thing the USA companies did earlier.
Now that is an actual comparative advantage that is actually hard to replicate due to huge entry costs.
(To lower the costs of labor further you need to actually give out life basics for free! China gets away with this by having a huge population competing thus far, but it won't hold.)