This statement is not entirely true. The location decision of a plant can have a significant impact on the future expansion potential of a firm. The location of a plant affects the availability of resources, such as labor, capital, and land, which can impact a firm's ability to expand in the future.
For example, if a firm locates its plant in an area with a limited supply of skilled labor, it may face challenges in expanding its workforce in the future. Similarly, if a firm locates its plant in an area with high land costs, it may face challenges in acquiring additional land for expansion.
In addition, local regulations and zoning laws can also impact a firm's ability to expand in certain locations. For example, if a plant is located in an area with strict environmental regulations, the firm may face challenges in expanding its production capacity without violating those regulations.
Therefore, plant location decisions should be carefully considered, taking into account the potential impact on future expansion potential.