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So traders would try to use this differential to their advantage, with the usual motto " buy cheap, sell dear ".
This promotes the internationalization of business.
To illustrate, an ad hoc Eurostat survey in 12 countries on international sourcing found that in 2001-2006, 16 % of enterprises with more than 100 employees had shifted some business functions abroad.
Out of these enterprises, 45 % cited reduction of labour costs as a motivation to shift part of their operations abroad.
Other motivations were gaining market access and strategic decisions ( 36 % each ) as well as reduction of non-labour costs ( 30 %).

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