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It still has to be somewhere with educated people, safety and political stability, and good infrastructure. But low costs.

We've seen a lot of Eastern European development recently for this reason. (People Can Fly, The Witcher, Metro 2033, DayZ, S.T.A.L.K.E.R)

This economy is not the time that companies feel like investing for 5 years in the future though. They want cash as close to now as possible.