Final answer:
The first typical motivation for a U.S. company considering global production is cost reduction through economies of scale, which precedes factors like market expansion, regulatory compliance, or access to specialized expertise.
Step-by-step explanation:
The primary motivation that typically happens first for a U.S. company when considering global production is cost reduction through economies of scale. While international trade provides opportunities for market expansion, access to specialized expertise, and regulatory compliance, it is the potential for cost savings that often initially drives companies to look abroad.
By engaging in global production, businesses can leverage large-scale manufacturing which lowers the average cost per unit through increased production volume. Furthermore, operating on a global scale allows companies to enjoy the benefits of competition and the variety offered by multiple producers. Despite concerns such as the 'race-to-the-bottom' where companies might relocate to countries with weaker environmental regulations for cost advantages, reality shows that firms consider a variety of factors more heavily. These include labor and capital costs, proximity to suppliers and customers, infrastructure quality, tax levels, and local government competency. Thereby, environmental costs, which constitute only a small fraction of total costs, do not dominate the decision-making process.