> Put it another way. You are a firm that needs steel as an input. You can buy identical steel for $1000/ton from supplier A, or $800/ton from supplier B, who s

> Put it another way. You are a firm that needs steel as an input. You can buy identical steel for $1000/ton from supplier A, or $800/ton from supplier B, who saves on costs by locating their steel mill in a cheaper geographic area. Would you say, actually, that's not fair to supplier B, "same steel same price"? No, of course not. I'd expect that you wouldn't go on buying $1000 steel from supplier A?