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Some low to middle-income countries enjoy either GSP/GSP+ or quota system when they export their goods to the EU or North America.

China doesn't have such privilege. Despite that China continues to export at a competitive price. How can they do that?

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    There seem to be two questions here. One on China (presumably they export at a competitive price by economies of scale, significant investment in technology to improve productivity, and driving down costs in the usual ways. The other is why GSP exists for other countries: and this is to drive growth, leading to better lives for the people and a more stable, peaceful world order. Those countries haven't had the significant investment in technology to improve productivity. All this seems rather obvious. – James K May 15 at 7:41
  • @JamesK if all of this is rather obvious, then you should answer. If there are two questions here, you should vote to close :) – Ekadh Singh May 15 at 13:38
  • I suspect that the OP has a different question in mind. I'd like to clarify before writing an answer. – James K May 15 at 16:38

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