Many countries try to get specialized in all their special secret sauces. China is into manufacturing since they can get efficiency where others cannot, but other countries may not have so many special characteristics. Only a question: what is the specific character of differentiation at a country level? For example: a high cost of living and a high cost of labor can make for a very high export cost which can only be sustained if the product is something special that can be justified for a high cost. Or the product is a luxury item: such as a high cost and high quality product.
The differentiation in that case is luxury. What is the extra cost of luxury? What premium does the market support? How does one justify for the buyer ? Expensive advertisements or does the extra cost and quality justification is enough?
