Locating Production Overseas

Question 1

Locating production overseas

Answer 1

-where to base production

Question 2

cost of production

Answer 2

-cost and labour costs
-buying the land

Question 3

Labour market issues

Answer 3

what makes a nation attractive to produce in
-how available is labour going to be/employees
-population/unemployment rate
-types of skills they can offer
-not all about cost

Question 4

Infrastructure

Answer 4

-city and towns that can sustain the business
-will there be easy transport/roads/airport networks

Question 5

Government Incentives

Answer 5

-sweeten the deal
-subsidies and grants for all overseas looking to invest in economy
-soft loans
-tax relief

Question 6

Political stability

Answer 6

-naturally cautious in investing in a country of unsuitability
-civil war will have to flea nation
-terror attack
-human rights violation

Question 7

Likely return on investment

Answer 7

-weigh up costs of producing in that country and output/value achieved
-balance up

Question 8

Natural Resources

Answer 8

-attracted to producing in a nation where they can get natural resources
-fuel production process
-big reliance
-if they can locate close to it, can trim down costs

Question 9

Ease of doing business

Answer 9

-want to invest in production facilities where ease of doing business is greatest
-thrive and succeeded
-corruption and government interference you want to avoid

Question 10

Trading bloc member

Answer 10

-if not a member of a trading bloc, might be less disirable
-don’t have to pay tariffs, sell goods anywhere in nation of trading bloc/EU