Problem:
You have just been appointed Vice President of Operations for a large American textile firm which manufactures a line of inexpensive fashion sportswear. The company's headquarters, design, and production facilities are located in North Carolina.
Most of your employees are low-skilled workers, although the design and administrative staff are well-educated, highly trained, and sophisticated.
The main mill was built in the 1970's and plans are being made to remodel or rebuild. The Chief Financial Officer suggests that the company could improve its efficiencies by re-locating some or all of the divisions.
The CEO is an old union man, with deep ties to the community and a keen business mind.
Using what you know of international trade theory, what would be your recommendations?