[gameman144]

Municipalities definitely can deal with them in some sense, since otherwise playing cities against each other would have no purpose.

It's our responsibility to make sure our local governments don't screw us over on that front, and that they represent our desires.

[Pet_Ant]

But if you have two desperate communities that are really looking for jobs, how do you prevent them from racing to the bottom? In some sense that is the 'correct' market solution. Government is a form of collective bargaining for citizens (amongst many other things of course).