A few reasons which may or may not apply to this situation. I don't agree with all of them, but they're worth a discussion I suppose.

* The "cheaper" country has fewer regulations. e.g. sweatshop labor that the local workforce can't compete with.

* The organization profits from the local community, its regulations, and populace but doesn't "give back" through jobs, etc.

* The notion of patriotism: as a community, we should put our interests first (and other countries will do the same). Obviously this is a waaaay bigger topic than can be addressed in a bullet point.