Assessment of a country as a market and production location

Question 1

What factors affect the suitability of a country as a market?

Answer 1

• Growth of disposable income.
• Ease of doing business.
• Infrastructure.
• political stability.
• Exchange rate.

Question 2

What factors affect the suitability of a country as a location production?

Answer 2

• Government incentive. (grants)
• Cost of production.
• Skills and availability of workers. (may impact quality of goods)
• ease of doing business.
• political stability.( strict laws and poor economy may affect production.)
• Natural resources.( easy access to resources may reduce transportation costs)
• Return on investment.
• location in a trading bloc. ( protectionist policies could be reduced.)
• Infrastructure ( transportation of resources may affect production)