Selecting Foreign Plant Sites: Economic, Social and Political Considerations

Abstract

Completed survey responses about 118 recently built plant sites in Latin America, Europe, or Asia, were obtained from an original list of 175 U. S. firms. Direct investment followed increasing sales growth, local demand, host government's cooperativeness, stability and honesty, as well as favorable labor relations and infrastructure. While the data suggest that a team of executives will reach a more satisfactory siting decision than one working alone, there was no one best set of criteria for the decision in different countries and industries.