Final answer:
Avoidance of host country governmental regulations is not considered a location advantage. Companies value factors like labor costs, proximity to suppliers/customers, infrastructure quality, taxes, and government competence above minimizing environmental regulation costs.
Step-by-step explanation:
Which of the following is NOT considered an example of the location advantages of locating facilities in other countries? The options given are: a. access to critical supplies, b. access to customers, c. low-cost labor, d. avoidance of host country governmental regulations. The factor that is not a location advantage is avoidance of host country governmental regulations.
Firms considering new locations for their facilities weigh numerous aspects: labor and financial capital costs; proximity to reliable suppliers and customers; quality of transportation, communications, and electrical power infrastructures; tax levels; and the competence and honesty of the local government. Although costs related to environmental regulations are considered, they typically amount to just 1 to 2% of the total expenses a large industrial plant might encounter. Therefore, the environmental regulation cost is not a driving force for location choice compared to these other, more significant factors.