About half right. The other half is that a developing nation basically has to start at low end manufacturing like textiles, then work their way into things like cheap toys, and slowly build their technical expertise and abilities along the way. While they’re making cheap, low-quality products they develop a reputation for cheap, low-quality products, which biases people against anything made in that country. But, if everything goes right, they start to produce medium and then high quality products and shed their old reputation.

Korean products used to be the cheap junk, but now they’re well-made. A lot of Chinese companies are starting to put out high quality stuff, and you can see that reflected in the pride they’re starting to take in their products. I’m seeing more and more Chinese companies making no effort to hide the fact that they’re Chinese, something that was quite rare even a decade ago.