Foreign manufacturers of products as diverse as automobiles

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In March 2014, BMW announced plans to spend $1 billion to expand production at its South Carolina plant. The plant produced the second-generation BMW X3 as well as the company’s X5 and X6 models. The new investment would allow BMW to build the new, larger X7. 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. Also in 2014, Swiss power storage company Alevo Group announced plans to build a $1 billion plant in North Carolina, and gun manufacturer Beretta announced plans to open a plant in Tennessee. What are some of the reasons that foreign manufacturers of products as diverse as automobiles, batteries, and guns might arrive at the same conclusion to build plants in the United States?

Reference no: EM13992400

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