Athukorala (2010) points out several factors as to why East Asia can perform as the center of a fragmented production network for regional and global investors. The following factors explain intra-industry trade and investment in East Asia. 1. 2. 3. Wage diversification across East Asia ranges from high wages in developed countries such as Japan and the Republic of Korea (henceforth, Korea), medium wages in Malaysia and Thailand, and relatively low wages in Indonesia and Viet Nam. Labor productivity varies from country to country. This diversification allows for a wider choice in the relocation of a production base to a more competitive location. Resource seeking strategies can then be applied.