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For many years, ‘first world’ corporations have thought of emerging and frontier markets as ideal places to locate labor-intensive operations. In fact, combining matured factory processes with low-cost labor has been richly rewarding, at least at the outset. By definition, however, emerging markets change … sometimes in ways that are not hospitable to foreign industry. The investing corporation would be well advised to look beyond simple labor costs and consider indicia of social and market stability that could give the ‘pool’ a solid foundation.

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