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Haley, 44, is a two-term governor who initially backed Trump rivals Sen. Marco Rubio and then Sen. Ted Cruz during the GOP battle for a White House nominee.
She is the first woman in the state's history to hold the role and the first woman picked by the president-elect to serve in a cabinet-level position.
The daughter of immigrants from India, Haley served three terms in South Carolina's State House before winning the governorship in 2010 and again in 2014.
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Trump chooses South Carolina Gov. Nikki Haley as UN ambassador