4.2 Flashcards
what factors need to be considered when deciding where to locate production
PRINCE SALT G
costs of production as a factor needed to be considered when deciding production location
- wages be lower in another country
- land and office space may be cheaper
skills and availiability of work force as a factor needed to be considered when deciding production location
another country may have higher skilled workers in plentifull supply
infrastructure as a factor needed to be considered when deciding production location
phsyical systems and services that allow society and businesses to work effectively such as electricity, supply, law enforcements
trading blocs as a factor needed to be considered when deciding production location
an agreement between countries to reduce or remove tarrifs and quotas on product made/sold within the bloc
ease of doing business as a factor needed to be considered when deciding production location
locating production close to the market sold to makes distribution easier and cheaper
also a lack of laws and regulations could make production cheaper
goverment incentives as a factor needed to be considered when deciding production location
specialist advice , lower corporte tax rates, offer of low interest loans and grants
political stabliity as a factor needed to be considered when deciding production location
locating production in countries with stable goverment can make planning for the future easier. a predictable goverment with reliable elections that set clear long term policies to create economic and social stablity will be extremely important
natural resources as a factor needed to be considered when deciding production location
access to raw material. locating close to these can reduce delays and costs. also make JIT possible
likely return on investment as a factor needed to be considered when deciding production location
investment appraisal could be used to compare return on investments of different potential locations
