Using production theory to analyze why developed countries transfer some traditional industries to developing countries.

Comparative cost theory: if the labor cost of developing countries is lower than that of developed countries, they will produce labor-intensive products; Developed countries have better capital and technology than developing countries, which are basically capital export or steel export. Factor endowment theory (H-O theory) includes factor density and factor abundance, as well as the proportional relationship between the existing production factor stock and different production factor stocks. The prerequisite for the existence of comparative cost difference is: 1, and the two countries have different factor endowments and factors used in production. As long as we understand the content of the theory and combine the differences between developing countries and developed countries, we can analyze it.