Should companies should be founded wherever the financial and legal friction is lowest or are there other important factors? What about the social responsibility a company has towards the community, city and even country that that company was created in?

I think there are a number of factors to consider here which will be specific to each individual context but just pointing out that the answer is only obvious if you've already decided what the important considerations are. VCs will always have a bias towards ruthless efficency but founders need to be more thoughtful. Not every decision is about the bottom line.