4.2.3 Assessment of a country as a production location

Question 1

Market attractiveness - disposable income

Answer 1

GDP per capita = good indicator
Business looking to expand internationally may look for fast growing income per capita
Rising disposable income - growth mc - more to spend on goods

Question 2

Picking an international market -

Factors to consider

Answer 2

Costs of production 
Skills and availability of labour force
Infrastructure
Location in trade block
Gov incentives 
Ease of doing business 
Political stability 
Natural resources 
Likely return on investment

Question 3

Skills and supply of countries labour force = key competitiveness

Answer 3

Skills and supply of countries labour force = key competitiveness

• skills - workplace training to increase peoples occupational mobility and increase flexibility of labour market
• enterprise - programs for start ups
• mobility - housing market reforms to improve affordability and geographical mobility
• STEM - investment in improved access - quality of teaching in stem