Identify three stakeholder groups in your country who may benefit from allowing the XYZ corporation to build the factory.

Many countries have industrial policies designed to promote the growth of certain industries. Manufacturing is especially favored by developing countries as a stage in the transition from low-income agricultural to middle income economies. Wealthy countries such the Unites States, Canada, and members of the EU tend to de-industrialize and focus more on design and services, outsourcing manufacturing to low-wage countries. However, with the increasing sophistication of industrial robots, wages may be less of a factor and thus several stakeholders could benefit from onshoring rather than offshoring.

First, an XYZ factory benefits individual workers by providing jobs. It is especially beneficial to people without university degrees who often can only obtain low-wage jobs in retail. For relatively unskilled laborers, factory jobs, especially if they are unionized, may pay more than other forms of unskilled work, and tend to be more stable as well.

Next, a factory can benefit national and regional governments by increasing tax revenues, both in terms of direct taxes (including property taxes) paid by XYZ, the income taxes paid by workers at XYZ, and the sales taxes collected on purchases made by XYZ and its workers.

Finally, XYZ factory can benefit local and national suppliers which supply it with goods and services. Given the cost of transportation and the local nature of many services, XYZ factory, if located in North America, is more likely to source its raw materials and other inputs from North American suppliers if it is located in North America than if it is located in Asia.