Emerging markets are no longer just making cheap products. Some of them are making technological leaps and have production technology that is more advanced than in developed countries. Good examples are Korea and Taiwan.
Korea and Taiwan produce almost all of the world lcd screens and computer memory. Samsung and LG are producing advanced mobile phones with touch screens. And Taiwan is home for the biggest chip contractors in the world: TSMC and UMC. Taiwan is also world leader in laptop production. But they often dont sell these under their own name. They make products for companies like Dell who sell them to the consumer. From a marketing perspective korea has a stronger position with good brand names like Samsung, LG and Hyundai.
Companies in China still lag Korea and Taiwan in technology. It is building its own chip foundaries for example and is starting to build ships. But it has found out Korea and Taiwan are still very strong. Korea is the worlds biggest shipbuilder with Hyundai heavy as the biggest shipbuilding company in the world. It takes more than just a low price to catch up with them. China will have to do more in research and development and marketing if they want to catch up.
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