The reasons are simple. Most of the developing countries offer very good and attractive subsidiaries. In addition to that in many countries the labor cost is still very low, which cuts down the production over heads drastically. In few developed countries the non-availability of labor power has also forced to move towards the developing countries. Second biggest trend in business today is of diversification.
Nobody wants to stick to only one business at a time.
Time is too risky for that. Even the companies who just use to trade are jumping in production. In today's market setting up any production unit without having good helping hands just leads to higher overheads and ultimately financial losses. Most the companies who have failed were due to lack of improper planning and bad guidance. The most important factor to open any production unit depends on the viability of the project.