in an effort to reduce costs, many mass-producers of toys locate their factories in areas where wages are lower. china manufactures about 70 percent of the world's toys and is home to more than 8,000 toy firms, most of which are located in the pearl river delta of guangdong province. 75% of all toys sold in the u.s., for example, are manufactured in china. issues and events such as power outages, supply of raw materials, supply of labor, and raising wages that impact areas where factories are located often have an enormous impact on the toy industry in importing countries.