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Operating people in such a plant are more likely to transfer to a similar plant of a competitor’s than they are to move to one of the other plants in their own company.
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Despite the devastation of World War II, Japan had built up a competitive industrial sector by the 1950s. Yet again, the deployment of cheap labor was a key component of this success. As recently as 1980, when Japan was already considered a developed country, the unit labor cost in nominal U.S. dollar terms was barely half of today’s levels.
