This chapter continues the discussion of the role of the regional scale in the context of globalization with a focus on the labor market. Labor, like capital, is an essential factor of production. However, we argue that labor and capital are reshaping two different scales of production – the supra-national global and the sub-national regional. While firms, and particularly transnational corporations, can choose among an international array of locations, what differentiates those locations are their respective regional labor markets. This differentiation occurs within and across national governance regimes that have long shaped the contingent contexts of transnational firm strategies at the national scale as described in detail in the previous chapter.