If the will of the people can be undermined by lack of investment, what power do they have?

I hear the argument made by the right all of the time: that businesses can and should invest in 'business friendly' states where that which makes them business friendly is defined in subjective and relative terms. How is the this not CERTAIN to be a race of the bottom where voters in different states must bargain away all of their rights and protections in order to keep or attract employers?