4.2.3- Assessment of a country as a production location

Question 1

Labour Force

Answer 1

• the UK has low unemployment
• the larger the unemployed population means a large pool of candidates for the position
• this however depends on what skills the business requires to fill the role

Question 2

Infrastructure

Answer 2

• does the country have adequate transportation links?
• does it have suitable buildings and premises?
• does it have a reliable power system?

Question 3

Location in the trade bloc

Answer 3

-some firms may begin production in different countries as a route to join a trade bloc

Question 4

Government Incentives

Answer 4

• the government of a country may offer incentives for businesses to set up there
• tax incentives are given to companies in the hope that foreign investors will bring in capital to support economic development and create local employment

Question 5

Ease of doing business and political stability

Question 6

Natural resources

Question 7

Likely return on investment

Answer 7

• moving production to anther country will be expensive

- investors will need to know that these expenses will be returned in profits