In 1996, Fuji Film, the Japanese manufacturer of photo film and related products, broke ground on a film plant in South Carolina. Fuji apparently thought that it would be better able to compete and create value with a U.S.-based facility. Other companies, such as BMW and Mercedes-Benz, have reached similar conclusions and taken similar actions. What are some of the reasons that foreign manufacturers of products as diverse as photo film and luxury automobiles might arrive at this same conclusion?