I think in this specific case, cost of environmental regulation
is at least as big a deal as cost of labor.
Textile manufacturing is nasty business. Running a textile mill in a country that cares about clean air and water is expensive, regardless of the labor rates.
Had a classmate once from Singapore that was complaining that their country was going through a downturn as the textile mills were closing. When they first came, it was great. Good jobs for everyone and a legitimate middle class was formed. But once people became middle-class, they then decided they wanted things like clean air, clean water, good schools, reliable electricity, and all the other things civilized people like to have. So they voted in tax-increases and new regulations to get these things, and then the textile companies shut things down and moved to China.
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In response to this post by Joey Wahoo)
Posted: 07/12/2018 at 9:05PM