Risks from Over-Specialisation - China's Underwear | tutor2u Economics
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Risks from Over-Specialisation - China's Underwear Town

This is an absolutely fascinating insight into China's one-trick industrial towns - underwear accounts for 80% of the Gurao's output. If that statistic isn't 'pants', I don't know what is! But is China's comparative advantage in underwear falling apart at the seams?

One trick low skilled manufacturing clusters are a feature of every industrial revolution but they are particularly vulnerable to international competition

China's "Town of Underwear"

However, increasingly China's position as a low cost manufacturer is coming under threat, and this is only going to happen at a faster rate, and the over-dependence upon one sector might prove to be destabilising, and given the number of migrant workers employed, such towns might fade away.

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