Quantifiable drivers of competitiveness can be generalized into two categories: regional cost drivers and firm-specific characteristics. The major region-specific cost factors influenc- ing location decisions include labor, facilities, and materials costs. These costs tend to be lower in China and Korea when compared to the United States, contributing to their leading position with respect to lowest sustainable prices. Cost structures that are potentially achievable in Mexico could also be competitive globally, as Mexico offers low labor rates. If low labor costs are combined with a low cost
of capital (for example, from a foreign parent company), Mexico may be able to sustain the lowest prices among the scenarios analyzed."