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 country’s industrial structure on a firm’s 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 firm’s 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.
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