It is, of course, just an off-the-wall idea, not necessarily implemented world-wide, (it's not far from what the USA did to build it's industrial base, or what Europe needs to get out of its current slum) and it needs more thought, but I think it would be a good starting point for a more balanced distribution of wealth and jobs and for the breaking of the primacy of enterprises over governments.
It needs exceptions for products that are necessarily produced in a certain region, like champagne and Scottish whisky and Munster cheese 8-).
Making transport very expensive is a related idea.
BTW Saying that any law or rule is bad for the economy or the people is a mantra, not a universal economic truth, and disproved by many historical examples.
Such mantras don't come from sound economic theories, but from almost religiously felt belief systems that are mainly based on folklore, bigotry and magical thinking.
No prediction that has come true has ever come from these belief systems; most don't even apply to the real world as it is today but to a non-existing situation that needs to be implemented first for them to become valid; they are like a boxer that has never lost because he never fought.
It is pointless having a discussion with adherents of these belief systems, because they don't generate falsifiable hypotheses and cannot be proven wrong. A shame really, I like discussions.