Smuggling is also a good business, with no small profit.
The Federation Government, under the control of capitalists, imposes higher tariffs on some cheaper foreign goods with clear advantages to protect the domestic market, protective tariffs.
Simply put, the price of a rolled-brim hat in the Federation could range from three to five dollars, referring here to the kind of hats sold to the average person in regular stores.
But in Yalan, a hat of the same quality might only cost 50 cents, or one yuan.
The journey from Yalan to the Federation isn't long, and with developed maritime transportation, these hats, after arriving in the Federation, would not end up costing more than one yuan and 10 cents each when landed.
This would deal a devastating blow to domestic enterprises making rolled-brim hats in the Federation because their production costs are higher.
