imity to markets. Increasing size and scale of production, together with an
emerging global perspective, reduce the firm's orientation toward production
in its home country. Adam Smith and David Ricardo both believed that
producers would naturally invest their profits at home, in part for patriotic
reasons, in part because they felt more secure doing so. But in the world of
commerce, patriotism is no match for the calculation of cost and profitability.
Producers produce where it is most profitable to do so.