This means that a parent company may happily pay more for something from a small company in its keiretsu, or group, than from an outside supplier.

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Still, it was a little bewildering watching hourly mechanics discuss FAA regulations regarding the application of zinc chromate to engine parts, or who eats the cost of engine parts from an outside supplier that have been sitting in the reject cart for a couple of days.

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To cope, it is attacking supplier costs, freezing wages and building more cars outside Korea.

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Search engine giant Baidu (BIDU) and mobile security supplier NetQin Mobile (NQ) have already invested heavily outside China.

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