Whereas U.S. wages were four times those in Japan in the 1960s, and this ratio was much the same when the manufacturing base shifted from Japan to Korea in the 1980s, the difference between Korean and Chinese wage levels is now ten to one.
Transportation costs in China are only one half those in Korea and the corporate tax rate in China is 15%, much lower than Korea’s 27%. Thirdly, in contrast to the previously prevailing mood of protectionism, the predominant current that has spread around the whole world is that of openness.