During the recent federal government budget debates, the “peace dividend” of the 1990s was mentioned a few times. Does the U.S. get a “war dividend” in the risk/reward decision of business location and expansion?
By war dividend, I simply mean the country’s significant investment in defense, homeland security and state and local investment in emergency services. Are companies regretting locating in Mexico, for example, as drug violence and corruption there cause risks and costs to escalate? According to an article in the New York Timeson July 11, 2011, the answer is, “No.”