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10 In January 2008, automobile manufacturer Volkswagen announced plans to build an automatic transmission and engine plant in South Carolina. Volkswagen apparently felt that it would be better able to compete and create value with U.S.-based facilities. Other companies such as Fuji Film and Swiss chemical Lonza have reached similar conclusions and taken similar actions. What are some of the reasons that foreign manufactures of products as diverse as automobiles, film and chemicals might arrive at this same conclusion?

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