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H&M goes Africa – cheap production in China is too expensive for the Swedes

Swedish fashion group H&M is planning to produce some of its clothes in Ethiopia. The first test orders have already been made ​​and mass production can start in the spring of 2014. The change is justified with production costs: In recent years, H&M was able to produce in China partly under inhuman conditions and by engaging in wage-dumping. As wages are currently rising in China, however, the Swedish corporation sees its profits endangered and therefore engages in Ethiopia, where wages are only half as high. Investors of H&M are the main beneficiaries of cost reductions.

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