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The key challenges that US faced under globalization are increasing wage and high labor cost compared to other developing countries such as China and Vietnam. The average hourly wage for Chinese manufacturing workers is less than a tenth that of their average U.S. counterparts, according to the Bureau of Labor Statistics. Under the trend of globalization, businesses over the world is more integrated and they would go for places with lower costs to reduce their total cost to win the competition on the market.

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