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Innovations in production and distribution are helping emerging economies compete with countries to which they once supplied cheap labour.

Competition has driven emerging economies, once suppliers of cheap labour, to become innovators of business models that have enabled them to move up the value chain and goglobal.

Developing countries are being forced to invent new business models which challenge the old business models, so they can remain competitive domestically.

Production and distribution models are going through rapid innovations worldwide as developed countries are being challenged by their earlier suppliers from the developing world.

✅ Correct Option: 2

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