The objective of this study is mainly to search for the bst or equilibrium location among several available alternatives and analyze the necessary condition for its existence. In the present analysis, however, the equilibrium location is investigated between two different regions/countries: the more developed and less developed ones. On the other hand, the analysis emphasizes loctional behavior over time, i.e., over several periods during the lifetime of an industry. Therefore, the primary objectives is to determine where a firm prefers to locate at the beginning of the production process and when it prefers to move to another region.