Valid reasons why a company should definitely open a new production facility in Latin America include

A. being able to avoid paying import tariffs on footwear produced and sold in Latin America; moreover, the freight costs on pairs shipped from a production facility in Latin America to the Latin American distribution center are lower than the freight costs on pairs shipped from production facilities outside Latin America to the Latin American distribution center.

B. the fact that Latin America is the lowest cost region in the world in which to produce and market athletic footwear (based on cost of pairs sold, as reported on p. 7 of the FIR).

C. the strong preference that Latin American consumers have for purchasing different models/styles of branded footwear, as compared to consumers in the other 3 regions (a Latin America production facility can produce models/styles that exactly match the preferences of Latin American consumers).

D. the strong preference that Latin American consumers have for purchasing branded footwear with a lower S//Q rating, as compared to North American or European consumers (a Latin America production facility can produce footwear with an S/Q rating that exactly matches the preferences of Latin American consumers).

E. the much weaker competition in both the branded footwear segment and the private-label segment that prevails in Latin America, which acts to boost profits on footwear sales in Latin America.