Fundamentals of Human Resource Management 5th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright

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Priciest Cities Are Spread over Three Continents
Expatriates spend more for housing, transportation, food, clothing, and other living expenses in Luanda, Angola, than in any other major city, according to a survey by Mercer Human Resources Consulting. In recent years, Asian cities dominated the top five, but in the most recent survey, two of the most expensive cities are in Africa, and only two (counting Russia) are in Asia.
Rankings are influenced by the relative value of national currencies, as well as by political strife and natural disasters. The least expensive city among those studied was Karachi, Pakistan, where security concerns have reduced the demand for housing.
Mercer's list of the 50 most expensive cities includes only one city in North America: New York, ranked number 32.
Why might an organization choose to locate a facility in one of the most expensive cities, in spite of the higher costs?