assessing a country as a production location

Question 1

cost of production

Answer 1

includes variable costs, machinery, labour, raw materials so business can determine appropriate PM and pricing

Question 2

skills and availability of labour force

Answer 2

indicates required training and labour costs, and how soon business can operate

Question 3

infrastructure

Answer 3

roads, transport systems, telecommunication, ease of doing business, deliveries to customers

Question 4

location in a trade bloc

Answer 4

determine who they can trade with, possible free trade, can get supplies

Question 5

government incentives

Answer 5

lower taxes or grants to encourage start ups. Suggests how involved in business government is and indicates strength of domestic firms

Question 6

ease of doing business

Answer 6

e.g barriers to entry, electricity, indicates how soon they can operate and is it worthwhile to set up long term