Assesement Of A Country As A Production Location

Question 1

Factors influencing production site

Answer 1

Cost of production
Government incentives
Natural resources
Infrastructure
Skills + availability of labour
Political stability
Location within trade bloc Returns
Ease of doing business

Question 2

Cost of production

Answer 2

Find lower costs for manufacturing
Setting up operations in anew country
Cost of land/electricity
Asia = low cost of production

Question 3

Gov incentives

Answer 3

Enables business to utilise land + machinery
Businesses will feel wanted
Affordable for countries to manufacture on that sector

Question 4

Natural resources

Answer 4

Early in supply chain
Needs to be close to transportation to reduce costs
Expensive to transport long distances

Question 5

Infrastructure

Answer 5

Stronger in developed countries
Basic services r needed by everyone

Question 6

Skills + availability of labour

Answer 6

Requires High levels of thinking
Requires high education
High levels of thinking

Question 7

Political stability

Answer 7

Problems seem more common
Sone countries gov change regularly

Question 8

Location within trade bloc

Answer 8

Business can gain comp ad
Lower costs of business
Market access
Reduced tariff

Question 9

Ease of doing business

Answer 9

Access to electricity is crucial
Ranked by world bank
Red tape countries
Bangladesh worst to set up in - unstable electricity

Question 10

Returns on investment

Answer 10

Firms r more likely to be located in a site where return on investment is high
Makes planning for future predictable
Sweetheart tax - reduced taxes for investement + cover sunk costs
Sunk costs = money that can’t be returned