Remember that the money you put in will be worth the quality you get out of it. Being close to suppliers will reduce the traveling time of the production materials. The proximity of other plants and facilities could be a deciding factor when considering placing another plant in another location. A free trade zone is defined as a closed facility into which foreign goods can be brought in without the necessary customs requirements. This opened the door for manufacturing in Mexico for a lower cost than in the United States.
Some countries have a high risk of danger present.
When locating outside of the United States companies must realize that danger of terrorist attacks are apart of everyday life. For example, Ireland has terrorists attacks daily. Restrictions, such as trade agreements, to enter a country and produce a product may be present. These restrictions may restrict several different things. Trading Blocs-Trading blocs are agreements that influence location decisions.