Undervalued currencies are an advantage for countries that want to export more. When the currency of a country has scarce value, then, all that a country produces will be cheaper than it should be. It fosters exports. Many foreign companies can move to that country too in search of cheaper land and a cheaper workforce.

A cheaper currency limits the imports of a country, then, giving the national companies an advantage over foreign competitors.

If you add to this a huge supply of workers, subsidies and tariffs, then, you have a great advantage over your competitors.

Educate the population, enroll a high number of young people in engineering faculties and you will get even better results.

If the population has already a relatively high IQ, then, the results will be incredible !!

Then, if you do not have a population whose median age is as high as that of Europe or United States, then, the expenditures related with Social Security will be relatively small.

Finally, add Capitalism, a strong working ethic and a high savings rate.

What do you get?

China.

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