This book offers a new understanding of how firms determine their location and what kinds of regional economic policies are needed to attract factories to a country and a region in a highly globalized economic setting. The theoretical and empirical analyses examine the influence of the transfer pricing system, corporate tax rates, and a country¿s industrial structure on a firm¿s decision to locate and the impact of firms¿ location on regional economic activities. The theoretical analysis elucidates the importance of the above-mentioned factors in the firm¿s selection of possible location. The empirical analysis uses as an example the case of a supply chain in East Asia.