Firms’ location selections and regional economic policy : industrial location in the highly globalized economy This book offers a new understanding of how firms determine their location and what kinds of regional economic policies are needed to attract factories to a country and a region in a highly globalized economic setting. The theoretical and empirical analyses examine the influence of the transfer pricing system corporate tax rates and a countrys industrial structure on a firms decision to locate and the impact of firms location on regional economic activities. The theoretical analysis elucidates the importance of the above mentioned factors in the firms selection of possible location. The empirical analysis uses as an example the case of a supply chain in East Asia. The empirical analysis is illustrated with the regional spatial development experiences at the country level and city level of selected countries and cities. The analysis offers a perspective for understanding the spatial patterns of a cross border production system