Question: In October 2010, BMW announced plans to spend $ 1 billion to expand production at its plant in South Carolina. The plant produced the second

In October 2010, BMW announced plans to spend $ 1 billion to expand production at its plant in South Carolina. The plant produced the second generation BMW X3 as well as the company’s X5 and X6 models. BMW apparently felt it would be better able to compete and create value with a U. S.–based facility. In fact, BMW actually expected to export 70 percent of the X3s produced in South Carolina. About the same time, Samsung Electronics announced plans to build a $ 3.6 billion plant in Texas, and Novartis announced plans to open a $ 1 billion- plus plant in North Carolina. What are some of the reasons that foreign manufacturers of products as diverse as automobiles, electronics, and pharmaceuticals might arrive at the same conclusion to build plants in the U. S.?

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