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Quality parameters
Compared with US the quality parameters for a production can be lower in the Chinese companies which results in lower cost in production. For an example the factories that the Chinese pencils might not be sophisticated state of the art factories which reduce their over head costs than the US factories where high quality factory standards are being maintained.
d. Low inflation rate
e. Low interest rates, in China
The setting up a business of this sort can be cheaper in China compared to US as the interest rates could be lower which will result low financial costs for the companies...
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