4.2.3 assesment of a country as a production location

Question 1

Infrastructure

Answer 1

-Transport networks for distribution
-Factories
-Telecommunication, broadband

Question 2

Government incentives-Encouraging FDI

Answer 2

-Grants on machinery
-Tax breaks
-Investment in infrastructure

Question 3

Government incentives-Benefits for the government

Answer 3

-Increased jobs
-Increased competition
-Increased tax revenue

Question 4

Political stability

Answer 4

-Tax rules
-Trade policies
-Wars e.g. Russia v Ukraine
-Corruption

Question 5

Ease of doing business

Answer 5

-Days to: start a business, get a construction permit, get electricity, import items
-Total tax rate as % of profit

Question 6

Cost of production

Answer 6

-Labour cost, productivity
-Cost of gas, materials, electricity

Question 7

Skills & availability of workforce

Answer 7

-Manufacturing skills
-Level of training
-Specialisation
-Literacy rates, read instructions, safety notices

Question 8

Location in trading bloc

Answer 8

Free access to a large market
e.g. going to Singapore an ASEAN country

Question 9

Natural resources

Answer 9

-Close & cheap access-lower transport costs
-Manufacturing centers close to mining facilities

Question 10

Likely return on investment

Answer 10

-Lower cost of location
-Where will provide the highest returns