Low but Intensified Product Diversification

The expansion of transportation and high-speed communication networks throughout the world has increased the export opportunities of Middle East and North Africa (MENA) producers. It has also increased competition for the region's producers by helping companies in other countries and regions export to world markets as well. Countries in the MENA region occupy a place midway up the ladder of comparative advantage. It is being squeezed from above by the more advanced developing countries, such as those in East Asia, whose labor is more skilled and whose industries are more capital intensive. On the other hand, it is being squeezed from below by countries such as China and India, with their large supply of unskilled labor.