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Labor-intensive firms, mainly in the apparel and footwear industries, choose to outsource production to countries where labor is abundant (primarily Southeast Asia and the Caribbean).

Labor-intensive firms, mainly in the apparel and footwear industries, choose to outsource production to

countries where labor is abundant (primarily Southeast Asia and the Caribbean). However, those firms

do not integrate with their suppliers there. Firms that utilize a more capital-intensive industry, on the

other hand, choose to integrate with their suppliers. Explain some possible differences between these

two industries. What would explain these choices?

This is from the Chapter of Firms in the Global Economy from the book of International Economics by Paul Krugman.

Please help with this question.

Thankyou!

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